Effect of set-off. of CPC : Effect of set-off.
set-
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Explanation using Example
Example 1:
Ravi lends Rs. 50,000 to Suresh. Later, Suresh sues Ravi for Rs. 30,000 claiming damages for breach of contract. Ravi, in his written statement, claims a set-off of Rs. 30,000 against the Rs. 50,000 that Suresh owes him. The court can consider both the original claim and the set-off, and if the set-off is valid, Suresh will only owe Ravi Rs. 20,000 after deducting the set-off amount.
Example 2:
Meena sues Raj for Rs. 10,000 for non-payment of rent. Raj, in his written statement, claims a set-off of Rs. 5,000 for the cost of repairs he made to the rented property, which Meena was supposed to bear. The court will consider both Meena's claim for rent and Raj's set-off for repairs, and if Raj's set-off is valid, Meena will only receive Rs. 5,000 after deducting the set-off amount.
Example 3:
Arjun sues Priya for Rs. 15,000 for goods sold and delivered. Priya, in her written statement, claims a set-off of Rs. 15,000 for a loan she gave to Arjun. Since both claims are definite pecuniary demands, the court can set-off Priya's claim against Arjun's claim, resulting in no amount being payable by either party.
Example 4:
Vikram sues Anjali for Rs. 20,000 for breach of contract. Anjali, in her written statement, claims a set-off of Rs. 10,000 for services she provided to Vikram under a different contract. The court will consider both Vikram's claim and Anjali's set-off, and if Anjali's set-off is valid, Vikram will only receive Rs. 10,000 after deducting the set-off amount.
Example 5:
Kiran sues Deepak for Rs. 25,000 for unpaid rent. Deepak, in his written statement, claims a set-off of Rs. 5,000 for the cost of repairs he made to the property. The court will consider both Kiran's claim for rent and Deepak's set-off for repairs, and if Deepak's set-off is valid, Kiran will only receive Rs. 20,000 after deducting the set-off amount.