Question

Identify a case where set off can be pleaded

• A. Claim for un liquidated damages
• B. Suit for recovery of ascertained sum of money
• C. Suit for a sum legally non-recoverable
• D. None of the above

Hint:

Remember the cardinal rule for legal set-off: it must be a "money vs. money" claim, and both sums must be 'ascertained' or fixed. You cannot set off a claim for uncertain damages against a claim for a fixed debt.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The question asks to identify the essential condition for a defendant to claim a "set-off" in a civil suit. A set-off is a counter-claim by the defendant against the plaintiff, which can be used to reduce or extinguish the plaintiff's claim.
Step 2: Key Formula or Approach:
The rules for a legal set-off are contained in Order VIII, Rule 6 of the Code of Civil Procedure, 1908. The key conditions are:
1. The suit must be for the recovery of money.
2. The defendant's claim against the plaintiff must be for an ascertained sum of money.
3. The sum claimed by the defendant must be legally recoverable (i.e., not time-barred).
4. Both parties must fill the same character as they fill in the plaintiff's suit.
Step 3: Detailed Explanation:
Let's analyze the options based on these conditions:
- (A) Claim for unliquidated damages: This is a claim for a sum that is not fixed or determined, like compensation for defamation. It cannot be set-off.
- (B) Suit for recovery of ascertained sum of money: This is the primary condition. "Ascertained sum" means a sum that is fixed and specific. If the plaintiff sues for an ascertained sum, the defendant can set-off another ascertained sum owed to him by the plaintiff. This is the classic case where set-off is allowed.
- (C) Suit for a sum legally non-recoverable: For example, a time-barred debt. This cannot be claimed by way of set-off.
Step 4: Final Answer:
Set-off can be pleaded in a Suit for recovery of ascertained sum of money.