What is the difference between set-off and counter-claim?

 The difference between set-off and counter-claim lies in their nature and purpose in legal proceedings:

O 8 R 6 of CPC provides for set off:

1. Set-off: Set-off refers to the adjustment or cancellation of mutual debts or claims between parties involved in a legal dispute. It allows a defendant to reduce or eliminate their liability by setting off a claim they have against the plaintiff. In other words, it is a defense mechanism used by the defendant to counterbalance the plaintiff's claim by asserting their own claim against the plaintiff. The purpose of set-off is to achieve a fair and equitable resolution of the dispute by considering the mutual claims between the parties.

O 8 R 6-A of CPC provides for counter claim:

2. Counter-claim: A counter-claim is a separate claim made by the defendant against the plaintiff in response to the plaintiff's original claim.Defendant can make counter claim regarding any right or claim in respect of a cause of action accruing to him against plaintiff either before or after filing of the suit.Unlike set-off, a counter-claim is an independent cause of action and seeks a remedy or relief against the plaintiff. The purpose of a counter-claim is to allow the defendant to assert their own claim and seek redress for any harm or injury caused by the plaintiff.

In summary, set-off is a defense mechanism used by the defendant to offset their liability by asserting a claim against the plaintiff, while a counter-claim is a separate claim made by the defendant against the plaintiff seeking relief or damages. Both set-off and counter-claim serve different purposes in legal proceedings and allow parties to assert their rights and claims in a fair and balanced manner.

Print Page