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Criminal Procedure Code QUESTION #9474
Question 1
Plaintiff sued Defendant for Rs. 200,000 as arrears of rent. The defendant filed a written statement claiming a set-off of Rs. 150,000 for money lent to the plaintiff. The plaintiff argues a set-off can only relate to the same transaction. Should the Court allow the set-off?
  • Yes; under the CPC a legal set-off is permissible for any ascertained sum of money due from the plaintiff to the defendant, even if arising from a different transaction✔️
  • No; set-off requires a separate counter-claim and cannot be raised in the written statement
  • Yes; but only if the defendant had already demanded the money from the plaintiff before the suit
  • No; set-off is only permissible when it arises from the same transaction as the plaintiff's claim
Correct Answer Explanation
Order VIII Rule 6 CPC permits a defendant to claim a legal set-off for any ascertained sum of money legally recoverable from the plaintiff, regardless of whether the cross-claim arises from the same transaction. The Rs. 150,000 loan, being an ascertained and legally recoverable sum, qualifies as a valid set-off.