Who May File a Counterclaim?
Who May File a Counterclaim?
1. Meaning of Counterclaim
A counterclaim is a claim made by a defendant against the plaintiff in the same suit.
It arises out of a cause of action that the defendant has against the plaintiff, either related to the subject matter of the original suit or a distinct cause connected to it.
The purpose is to consolidate disputes between the parties in one proceeding.
2. Who Can File a Counterclaim?
Only a defendant in a suit may file a counterclaim against the plaintiff.
A counterclaim must be filed by a party who is defending the original suit — it cannot be filed by a third party or someone who is not a defendant.
The defendant may file a counterclaim if:
The claim arises out of the same transaction or series of transactions as the plaintiff’s claim; or
It is a distinct claim but related enough to be tried together for convenience.
3. Legal Basis
Under Order 8 Rule 6 of the Civil Procedure Code (CPC), 1908, the defendant can set off any cause of action they have against the plaintiff by way of a counterclaim.
The rule encourages economy of litigation by allowing disputes between the same parties to be resolved together.
4. Conditions for Filing Counterclaim
The counterclaim must be against the plaintiff only.
It must be filed in the same suit.
The defendant should not file a counterclaim against a third party.
The counterclaim can be independent or connected with the plaintiff’s claim.
The court has discretion to allow or reject a counterclaim based on facts and legal principles.
5. Illustrative Case Law
B.K. Educational Services Pvt. Ltd. v. Parag Gupta & Associates (2009)
The Supreme Court emphasized that the counterclaim should relate to the same subject matter or be connected sufficiently to avoid multiple proceedings.
K.K Verma v. Commissioner of Income Tax (1953 AIR 225)
The court held that only a defendant can file a counterclaim, and it cannot be filed by someone who is not a party to the suit.
Ram Chandra Agarwal v. Mahabir Prasad (1963 AIR 1477)
Clarified the scope of counterclaims and their relation to the plaintiff’s original cause of action.
6. Why is this Important?
Allows a defendant to assert claims against the plaintiff without filing a separate suit.
Prevents multiple lawsuits between the same parties over related issues.
Saves time, costs, and judicial resources.
Encourages fairness by letting defendants put forward their grievances within the same suit.
7. Summary
| Aspect | Explanation |
|---|---|
| Who may file? | Defendant in the original suit |
| Against whom? | Plaintiff only |
| Where filed? | In the same suit |
| Nature of claims | Related or distinct causes of action connected to original suit |
| Legal basis | Order 8 Rule 6, CPC |
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