Particulars of set-off to be given in written statement
Full Text
(1) Where in a suit for the recovery of money the defendant claims to set-off against the plaintiff's demand any ascertained sum of money legally recoverable by him from the plaintiff, not exceeding the pecuniary limits of the jurisdiction of the Court, and both parties fill the same character as they fill in the plaintiff's suit, the defendant may, at the first hearing of the suit, but not afterwards unless permitted by the Court, presents a written statement containing the particulars of the debt sought to be set-off.
(2) Effect of set-off.—The written statement shall have the same effect as a plaint in a cross-suit so as to enable the court to pronounce a final judgment in respect both of the original claim and of the set-off: but this shall not affect the lien, upon the amount decreed, of any pleader in respect of the costs payable to him under the decree.
(3) The rules relating to a written statement by a defendant apply to a written statement in answer to a claim of set-off.
Illustrations: (a) A bequeaths Rs. 2,000 to B and appoints C his executor and residuary legatee. B dies and D takes out administration to B's effects, C pays Rs. 1,000 as surety for D; then D sues C for the legacy. C cannot set-off the debt of Rs. 1,000 against the legacy, for neither C nor D fills the same character with respect to the legacy as they fill with respect to the payment of the Rs. 1,000.
(c) A sues B on a bill of exchange. B alleges that A has wrongfully neglected to insure B's goods and is liable to him in compensation which he claims to set-off. The amount not being ascertained cannot be set-off.
(d) A sues B on a bill of exchange for Rs. 500. B holds a judgment against A for Rs. 1,000. The two claims being both definite pecuniary demands may be set-off.
Plain English Summary
Governs statutory legal set-off in money recovery suits, permitting the defendant to adjust an ascertained, legally recoverable sum within pecuniary jurisdiction where both parties litigate in the same legal capacity.
Key Legal Elements
- Money Recovery Suits Only: Legal set-off applies strictly to money suits.
- Ascertained Sum of Money: Must be a liquidated, fixed amount; unliquidated damages cannot form statutory legal set-off.
- Legally Recoverable: Must not be barred by limitation on the date the suit is instituted.
- Within Pecuniary Jurisdiction: Cannot exceed the monetary ceiling of the trial court.
- Same Character: Parties must sue and be sued in the identical legal capacity (e.g., individual vs. trustee/executor distinctions).
- Cross-Suit Status: Treated as a counter-plaint requiring ad valorem court fee.
Practical Note
Legal Set-Off vs. Equitable Set-Off: 1. Distinction Settled by Supreme Court - Jitendra Kumar Khan v. Peerless General Finance (2013) 8 SCC 769: Legal set-off under Rule 6 requires an 'ascertained sum' arising from the same or distinct transactions. Equitable set-off (inherent in equity) applies to unascertained sums (like damages) but MUST arise strictly out of the very same transaction. 2. Court Fee Obligation: A claim of set-off requires payment of ad valorem court fees on the set-off amount just like a plaint. 3. Limitation Date: The limitation for a set-off claim dates back to the date of institution of the plaintiff's suit (Section 3(2)(b) Limitation Act, 1963).
हिंदी पाठ
(1) जहां धन की वसूली के वाद में प्रतिवादी वादी की मांग के विरुद्ध किसी ऐसी निश्चित धनराशि (Ascertained sum of money) के मुजरा (Set-off) का दावा करता है जो उसके द्वारा वादी से विधिपूर्वक वसूलीय है, जो न्यायालय की अधिकारिता की धन संबंधी सीमाओं से अधिक नहीं है, और दोनों पक्षकार वही हैसियत (Same character) रखते हैं जो वे वादी के वाद में रखते हैं, वहां प्रतिवादी वाद की पहली सुनवाई पर, किंतु उसके पश्चात न्यायालय द्वारा अनुज्ञात किए जाने के सिवाय नहीं, मुजरा किए जाने के लिए चाहे गए ऋण की विशिष्टियों वाला लिखित कथन प्रस्तुत कर सकेगा।
(2) मुजराई का प्रभाव।—लिखित कथन का प्रभाव प्रति-वाद (Cross-suit) में वादपत्र के समान होगा जिससे न्यायालय मूल दावे और मुजराई दोनों के संबंध में अंतिम निर्णय सुनाने में समर्थ हो सके।
(3) प्रतिवादी द्वारा लिखित कथन से संबंधित नियम मुजराई के दावे के उत्तर में दाखिल किए गए लिखित कथन को लागू होंगे।