Set off refers to a cross claim made by a defendant in response to a plaintiff's claim for recovery of money. Under set off, both parties act as debtor and creditor simultaneously regarding the same matter. There are two types of set off - legal set off, where the claimed amount is ascertained/definite and the court is bound to provide it, and equitable set off, where the court has discretion and is not bound, as the amount is not ascertained. Set off ensures recovery of money by making both parties debtors, so one cannot claim from the other without first clearing their own debt.
Set off refers to a cross claim made by a defendant in response to a plaintiff's claim for recovery of money. Under set off, both parties act as debtor and creditor simultaneously regarding the same matter. There are two types of set off - legal set off, where the claimed amount is ascertained/definite and the court is bound to provide it, and equitable set off, where the court has discretion and is not bound, as the amount is not ascertained. Set off ensures recovery of money by making both parties debtors, so one cannot claim from the other without first clearing their own debt.
Set off refers to a cross claim made by a defendant in response to a plaintiff's claim for recovery of money. Under set off, both parties act as debtor and creditor simultaneously regarding the same matter. There are two types of set off - legal set off, where the claimed amount is ascertained/definite and the court is bound to provide it, and equitable set off, where the court has discretion and is not bound, as the amount is not ascertained. Set off ensures recovery of money by making both parties debtors, so one cannot claim from the other without first clearing their own debt.
That is the cross claim by the defendant in the response of the claim of the plaintiff about the recovery of money . Basically that is the situation where both parties of the set off are act as the debtor and the creditor simultaneously . So ,in that situation when the plaintiff claim the defendant about the recovery of money so the defendant also claim to plaintiff for same matter . 2. Cross reference /relevant provisions . Order 8 rule 6 of CPC 3. Meaning Set off ‘’meaning ‘’ settlement and fixing . 4. Definition . ‘’ that is the cross claim of the defendant in response of the claim of the plaintiff for the recovery of money’’ 5. Illustration . There is the dispute between Haris and Hashir about the recovery of money in which Haris claim that Hashir owe 50,000 from Haris so bound to pay this amount back to him but hashir cross claim that Haris also owe the amount of 25,000 from him so he must pay this amount 1st to him 6. Essential conditions of set off . 1. The suit must relate to the recovery of money 2. The sum of money must be ascertained or definite . 3. The sum of money which demanded that recoverable by legally . 4. The sum must not exceed the pecuniary limit of the court . 7. Effect of set –off . In set off matter there are the two dispute at the same time but they deal combinedly so , When the plaintiff file the suit against defendant for the recovery of money and the defendant also file the suit for the recovery of money so if the such situation occur when the plaintiff draw back his suit and then at this case due to the withdraw of the plaintiff case has not the any effect of the defendant case his suit still continue but defiantly he recover his amount from plaintiff if he proof his claim true . 8. Kinds of set off . There are 2 kinds of set off 1. Legal set off 2. Equitable set off 1. Legal set off The order 8 rule 6 of CPC deals with it . ‘’ that is such kind of set off where the amount of set off on which claim is filed is ascertained so court bound to set off this claim ‘’ Illustration . The matter of dispute between the Haris and Usama in which Usama claim that the hairs borrow 3,000 from him but haris instead to pay claim that the Usama also borrow 1,000 from him so he must 1st pay this amount . 2. Equitable set off ‘’That is such kind of set off where the amount on which the claim of set off is file is not ascertained so here the court made the judgment on the base of its discretion ‘’ Illustration . 1. The servant file the suit against his master that his master not pay him his salary so instead to pay the salary to servant the master also file the suit that his servant broke many household items of master house during his working hour and become the cause of loss of master and master suffer all these loss due to negligence of servant so servant at 1st pay for all these instead of demanding salary . 9. Distinguish between the legal and the equitable set off . Legal set off Equitable set off 1 In legal set off the In equitable set off sum of money is the amount is not ascertained ascertained 2 In legal set off the In it court fees are not court fees are paid paid 3 That is the right of That is depend upon the individual so the discretion of the court bound to court so court not provide it bound here
4 Here to claim set off But here to claim the
that is not necessary recovery of money that the dispute of that is require that the recovery of the dispute between money must took the plaintiff and the place in the same defendant must took transaction between place in the same the plaintiff and the transaction defendant. Here the defendant can claim to plaintiff for the recovery of money on the base of the any previous transaction between themselves . 10. Conclusion . At last ,we can conclude that this doctrine of set off ensure the recovery of the money by making liable them debtor because both hold the status of debtor so unless the one not clear his due to other the other under this doctrine also has the excuse of non -payment.
Harry Polish, Trustee in Bankruptcy of Harry Polish, Trustee in Bankruptcy of Edward F. Dougherty, T/a Penn Plumbing and Heating Co., Bankrupt v. Johnson Service Company, 333 F.2d 545, 3rd Cir. (1964)