Step 1: Written statement in CPC.
Under the Code of Civil Procedure, the defendant may present defenses and claims.
Step 2: Definitions.
- Set off: Claiming adjustment of a legally recoverable sum owed by the plaintiff.
- Counter claim: Independent claim made by the defendant against the plaintiff.
Step 3: Application.
Both set-off and counterclaim can be included in the written statement.
Step 4: Conclusion.
Thus, correct answer is (C).