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Criminal Procedure Code QUESTION #9528
Question 1
A files a suit against B claiming Rs. 200,000 as price of goods sold. B in his written statement claims a set-off of Rs. 250,000 for a separate unliquidated claim for damages for breach of another contract. Can B's set-off be recognised as a legal set-off?
  • Yes; the Court can estimate the damages and allow the set-off
  • Yes; since both arise from business dealings, the set-off is permissible
  • No; a legal set-off under Order VIII Rule 6 must be for an ascertained sum of money legally recoverable; an unliquidated claim for damages is not an ascertained sum and cannot be pleaded as a legal set-off, though it may be raised as an equitable set-off in appropriate circumstances✔️
  • Yes; any financial claim qualifies as a set-off
Correct Answer Explanation
Order VIII Rule 6 CPC requires that a legal set-off be for an ascertained sum of money legally recoverable from the plaintiff. An unliquidated claim for damages that has not been reduced to a definite sum does not satisfy this requirement. Such claims may be raised as a counter-claim or equitable set-off, but not as a legal set-off.