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The Code of Civil Procedure, 1908: page 108

The Code of Civil Procedure, 1908, India Code delivered snapshot 393b8848fdfc476a, physical page 108, typed edition 77428589d4e341672ed6a3e5f663be7dec530c42d0600064ac1314302939267d. Unreviewed extraction.

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(d) A sues B on a bill of exchange for Rs. 500. B holds a judgment against A for Rs. 1,000. The two claims being both definite
    pecuniary demands may be set-off.
(e) A sues B for compensation on account of trespass. B hold a promissory note for Rs. 1,000 from A and claims to set-off that
    amount against any sum that A may recover in the suit. B may do so, for, as soon as A recovers, both sums are definite
    pecuniary demands.
(f) A and B sue C for Rs. 1,000. C cannot set-off a debt due to him by A alone.
(g) A sues B and C for Rs. 1,000. B cannot set-off a debt due to him alone by A.
(h) A owes the partnership firm of B and C Rs. 1,000. B dies, leaving C surviving. A sues C for a debt for Rs. 1,500 due in his
     separate character. C may set-off the debt of Rs. 1,000.
     1
       [6A. Counter-claim by defendant.—(1) A defendant in a suit may, in addition to his right of
pleading a set-off under rule 6, set up, by way of counter-claim against the claim of the plaintiff, any
right or claim in respect of a cause of action accruing to the defendant against the plaintiff either before
or after the filing of the suit but before the defendant has delivered his defence or before the time limited
for delivering his defence has expired, whether such counter-claim is in the nature of a claim for
damages or not:
     Provided that such counter-claim shall not exceed the pecuniary limits of the jurisdiction of the
court.
     (2) Such counter-claim shall have the same effect as a cross-suit so as to enable the Court to
pronounce a final judgment in the same suit, both on the original claim and on the counter-claim.
     (3) The plaintiff shall be at liberty to file a written statement in answer to the counter-claim of the
defendant within such period as may be fixed by the court.                      e
     (4) The counter-claim shall be treated as a plaint and governed by the rules applicable to plaints.
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     6B. Counter-claim to be stated.—Where any defendant seeks to rely upon any ground as supporting
a right of counter-claim, he shall, in his written statement, state specifically that he does so by way of
counter-claim.
                                                                     aC
     6C. Exclusion of counter-claim.—Where a defendant sets up a counter-claim and the plaintiff
                                                               di
contends that the claim thereby raised ought not to be disposed of by way of counter-claim but in an
                                                          In
independent suit, the plaintiff may, at any time before issues are settled in relation to the counter-claim,
apply to the Court for an order that such counter-claim may be excluded, and the Court may, on the
hearing of such application make such order as it thinks fit.
     6D. Effect of discontinuance of suit.—If in any case in which the defendant sets up a counter-claim,
the suit of the plaintiff is stayed, discontinued or dismissed, the counter-claim may nevertheless be
proceeded with.
     6E. Default of plaintiff to reply to counter-claim.—If the plaintiff makes default in putting in a
reply to the counter-claim made by the defendant, the Court may pronounce judgment against the plaintiff
in relation to the counter-claim made against him, or make such order in relation to the counter-claim as it
thinks fit.
     6F. Relief to defendant where counter-claim succeeds.—Where in any suit a set-off or
counter-claim is established as a defence against the plaintiff’s claim and any balance is found due to
the plaintiff or the defendant, as the case may be, the Court may give judgment to the party entitled
to such balance.
     6G. Rules relating to written statement to apply.—The rules relating to a written statement by a
defendant shall apply to a written statement filed in answer to a counter-claim.]
     7. Defence or set-off founded upon separate grounds.—Where the defendant relies upon several
distinct grounds of defence or set-off 1[or counter-claim] founded upon separate and distinct facts, they
shall be stated, as far as may be, separately and distinctly.
     8. New ground of defence.—Any ground of defence which has arisen after the institution of the suit
or the presentation of a written statement claiming a set-off 1[or counter-claim] may be raised by the
defendant or plaintiff, as the case may be, in his written statement.
     8A. [Duty of defendant to produce documents upon which relief is claimed by him.] omitted by Act
46 of 1999, s. 18 (w.e.f. 1-7-2002).
     2
       [9. Subsequent pleadings.—No pleading subsequent to the written statement of a defendant other
than by way of defence to set-off or counter-claim shall be presented except by the leave of the Court

1. Ins. by Act 104 of 1976, s. 58 (w.e.f. 1-2-1977).
2. Subs. by Act 22 of 2002, s. 9, for rules 9 and 10 (w.e.f. 1-7-2002).

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