Question

In which of the following cases a Set Off can be claimed?

• A. 'A' owed the partnership firm of 'B' & 'C' Rs. 1000/-. 'B' dies leaving 'C' surviving. 'A' sues 'C' for a debt of Rs. 1500/- due in his separate character. 'C' wants to set off the debt of Rs. 1000/-.
• B. 'A' sues 'B' for Rs. 20,000/-. 'B' wants to set off the claim for damages for breach of contract for specific performance.
• C. Both 'A' & 'B'
• D. None of the above

Hint:

Set-off applies only to ascertained sums of money, not unliquidated damages.

Answer 1

The Correct Option is A

Step 1: Understanding set-off.
Set-off under CPC allows defendant to claim an ascertained sum legally recoverable from plaintiff in same capacity.

Step 2: Case analysis.
- (A): The debts are mutual, ascertained, and between the same parties in same capacity → valid set-off.
- (B): Claim for damages in specific performance is unascertained and not liquidated → cannot be set-off.

Step 3: Conclusion.
Hence, only (A) is valid.