Rule 6 of CPC : Rule 6: Particulars of set-off to be given in written statement.
CPC
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Explanation using Example
Example 1:
Scenario: Ravi lends Rs. 50,000 to Suresh. Later, Suresh sues Ravi for Rs. 30,000 for some unpaid services he provided to Ravi.
Application of Rule 6: In this case, Ravi can claim a set-off against Suresh's demand. Ravi can present a written statement at the first hearing of the suit, stating that Suresh owes him Rs. 50,000, which is legally recoverable. Since both parties are in the same character (Ravi as the lender and Suresh as the borrower), Ravi can set-off the Rs. 30,000 claimed by Suresh against the Rs. 50,000 owed to him. Therefore, if the court permits, Ravi would only need to pay the balance amount, if any, after the set-off.
Example 2:
Scenario: Anita sells goods worth Rs. 1,00,000 to Bharat. Bharat later sues Anita for Rs. 20,000, claiming that the goods were defective and he had to spen...
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