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Jean set offFull description
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SET OFF When a claim is made against another claim, it is called set-off. A set-off therefore is a cross claim which has the effect of partly offsetting the original claim. Set off has been described in the Rle ! Order " of the #ode of #i$il %rocedre of &ndia. Set-off is a form of settling the reciprocal debts. When there are mtal debs between the plaintiff and the defendant then, one debt is set-off against another debt.' Set-off is one of the defense pleas which is a$ailable to the plaintiff as it redces the plaintiffs claim in a sit for reco$ery of money. money.( )&STOR* +nder the old English law set-off had had no eistence e$en thogh thogh it was already recognised recognised nder eity. &nsol$ent ebtors Relief Act '/(0 and the ebts Relief Amendment Amendment Act '/12 together broght abot the set-off concept nder the legal stattes for the first time. The concept of allowing the defendant in a ci$il lawsit to claim a set off originated bac3 when defendants were still sent to debtors prisons for owing money. #orts began to reali4e that the doctrine of eity called for a soltion to sitations where a defendant was sent to debtor5s prison despite the fact that the plaintiff in the lawsit actally owed money to the defendant as well. At the time, ci$il procedre reired for the first lawsit to be settled before another claim cold be addressed. As As a reslt, any claim that the defendant had against the plaintiff was not before the cort ntil after the original lawsit terminated 1. O#TR&6E OF SET OFF &n a particlar when this type of sitation happens when the plaintiff finds ot that the plaintiff has some debt to settle against the defendant and the defendant in trn also finds finds ot that he has similar debts against the the plaintiff, then he cold claim a set off for the particlar amont7.
The doctrine of set-off cold be defined as ?the etinction of debts of which two persons are reciprocally debtors to one another by the credits of which they are reciprocally creditors to one another.@2 #O6&T&O6S FOR #A&B&6C A SET-OFF A defendant cold only claim a sit of set off if the following conditions ha$e been specified. '. (. 1. 7. 2.
When the particla particlarr sit has been been abot abot the the reco$ery reco$ery of money money The sm of mone money y mst mst be be ascert ascertaine ained d The sm sm of mone money y mst mst be legal legally ly reco$ reco$erab erable le The sm of money money mst be be reco$erable reco$erable by the the defendants defendants from from the plainti plaintiffs ffs The sm of the money money to be reco$er reco$ered ed mst not not eceed eceed the pecniary pecniary Drisdi Drisdiction ction in
which the cort has been institted. !. >oth the the parties parties mst mst flfil flfil each others others claims claims criteria criteria for for debt settleme settlement. nt.! EFFE#T OF SET OFF The defendant is considered to be in the same position as that of the plaintiff as regards of the amont when he claims for set off. As regards to nmbering of cases the set off filed doesn5t ha$e a new case nmber , rather it is tagged with the original claim. E$en thogh they are separate sits they are tried together /. &n cases where the defendant is not able to appear in person and is not able to sbstantiate his claim as a reslt of which his sit is dismissed. This howe$er ha$e no bearing on the set off claimed by the defendant. &f the defendant cold pro$e that the plaintiff owes him money then the sit cold be institted against him. "
T*%ES OF SET-OFF Set off has been classified into two types as '. egal egal setset-of off f 2. Eitable set-off A4i4 , A&R '02! %at '00 p ( 5 8ayanti al $ Abdl A4i4 Ta3wani , Se$enth Edition , p (!/ para 1 6 #i$il %rocedre with imitation Act '0!1, #. G Ta3wani 8 o3hram , A&R '0! B% 101 7 ayaram $s 8o3hram 8 8amnadas ; >ehari , A&R '07' 6ag (2"
