10 Most Important Difference between "Set-Off" and "Counter-Claim"

10 Most Important Difference between “Set-Off” and “Counter-Claim” are listed below:

Set-off:

1. Set-off is explained in Rule-6 of Order-8 of C.PC.

2. Set-off is an old provision, and is existing since the enactment of C.P.C.

3. Set-off is of two kinds — (i) Legal Set-off; and (ii) Equitable Set-off.

Rule

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4. Set-off is a statutory defense of the defendant to a plaintiff’s action.5. Set-off must be for an ascertained sum.

6. Set-off must arise out of the same transaction.

7. In a set-off, the defendant demands in a plaintiff’s suit an amount below or up to the suit claim.

8. The amount must be recoverable at the date of the suit.

9. Set-off is a ground of defense to the plaintiff’s action, just like a shield.

10. Set-off is a right to adjust the claim of the plaintiff against certain right or dues of the person entitled

Counter-claim:

1. Counter-claim is explained in Rules from 6-A to 6-G of Order-8.

2. Counter-claim is a new provision and the Rules 6-A to 6-G have been inserted in the Civil Procedure Code, 1908 by C.P.C. Amendment Act, 1976.

3. Counter-claim has no such classification.

4. Counter-claim is substantially a cross-action.

5. A Counter-claim can be made for an ascertained sum, or even for an unascertained sum.

6. It need not arise out of the same transaction.

7. In a counter-claim, the defendant demands for a large amount. The claim for excess amount is really a counter-claim.

8. The amount must be recoverable at the date of the written statement.

9. Counter-claim is a weapon of offence, just like a sword which enables the defendant to enforce the claim against the plaintiff effectually as an independent action.

10. A counter-claim is a claim made by the defendant in excess of the right claimed by the plaintiff.

Submitted by : Dr. Nisha, Category : Knowledge