Difference Between Set-Off and Counter Claim in CPC
Difference Between Set-off and Counter-Claim under CPC
| Basis | Set-off | Counter-Claim |
|---|---|---|
| Provision | Section 6, Order VIII Rule 6 CPC | Order VIII Rule 6A–6G CPC |
| Nature | A defence against plaintiff’s claim by showing that plaintiff also owes money to defendant. | A separate claim made by defendant against plaintiff, like a cross-suit. |
| Scope | Only in money suits (for ascertained sum of money). | Can be for any claim (money, damages, injunction, declaration, etc.). |
| Amount | Must be a definite sum, legally recoverable, ascertained, and within pecuniary jurisdiction. | No restriction to ascertained sum; may be any lawful cause of action accruing to the defendant. |
| Cause of Action | Must arise from a cause of action independent of plaintiff’s suit, but related to debt due from plaintiff. | May arise from same cause of action or a different one, as long as it is against the plaintiff. |
| Pecuniary Jurisdiction | Limited to the jurisdiction of the court where suit is filed. | Same court must have jurisdiction to try the counter-claim, even if independent. |
| Stage | Can be raised only at the first hearing/filing of written statement. | Can be filed before defendant has delivered his defence or before time for defence expires. |
| Effect | Works like a defence to reduce or wipe out plaintiff’s claim. | Works like a cross-suit; plaintiff must reply, and court can pass decree for or against either party. |
| Decree | Court passes one decree after adjusting set-off. | Court passes separate decree on both claim and counter-claim in the same suit. |
Case Laws
Union of India v. Karam Chand Thapar (AIR 1955 SC 468)
Set-off can be claimed only in suits for money.
Rohit Singh v. State of Bihar (2006) 12 SCC 734
Counter-claim is substantially like a cross-suit and can be filed even if cause of action is different.
Jag Mohan Chawla v. Dera Radha Swami Satsang (1996) 4 SCC 699
Counter-claim need not be for money only; it can include injunction, damages, etc.
Summary in Simple Terms
Set-off = Defendant says: “You also owe me money, so adjust it from what I owe you.” (only in money suits).
Counter-claim = Defendant says: “Not only do I deny your claim, but I also have a separate claim against you, so decide both in this case.”
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