What is a set-off claim?
Set-off is related to debts. It is the reciprocal claim made by the defendant. Set-off can be used only under the suit for recovery of money. 10,000 in debt of B. Here, both are mutually indebted to each other, and they both have to pay off the debts due to each other.
What is a defence of set-off?
Set off can only be used defensively, to reduce or extinguish a claim. It provides the defendant with protection against a claim, acting like a shield. However, if set off is used by a defendant as a defence to all or part of the claim in legal proceedings, no separate court fee will apply.
What are the two types of set-off?
Types of set-off
- independent set-off (sometimes known as legal set-off or statutory set-off)
- transaction set-off (also known as equitable set-off)
- contractual set-off.
- insolvency set-off, and.
- banker’s set-off (sometimes known as current account set-off)
Is there a common law right to set-off?
Common law provides the key features that must be present for set-off to arise are; mutuality of debts (each party must be the sole beneficial owner of the debt it is owed and the sole person liable for the debt it owes) the claims each party has must be for non-payment of money.
What is the purpose of set off?
Set-off clauses are used for the benefit of the party at risk of a payment default. They give the creditor legal access to a debtor’s assets at either the lender’s financial institution or another one where the debtor has accounts.
When set-off can be claimed?
The right to set-off dealt with by Order 8, Rule 6 of the Code is called a legal set-off. Legal set-off can be claimed under this rule only in respect of an ascertained sum of money legally recoverable by the defendant from the plaintiff arising out of two different transactions.
What is place of suing?
The meaning of place of suing is simply the venue of the trial. Section 15 to 20 of CPC deals with this. Every court has specific pecuniary and territorial jurisdiction. Section 15 of CPC states that the suit to be filled in the court of lowest grade competent to try it.
When set off can be claimed?
What is the right to offset?
The right of offset allows banks and credit unions to take money from your checking account, savings account or certificate of deposit (CD) to pay a debt on another account you have with that financial institution.
What is effect of set off?
“Set-off” means a claim set up against another. It is a cross-claim which partly offsets the original claim. The written statement shall have the same effect as a plaint in a cross-suit so as to enable the Court to pronounce a final judgment in respect of both the original claim and of the set-off.