Difference

Distinguish between Legal and Equitable set off.

In a suit for recovery of money, the following to aspect can be pleaded by the Defendant in his written statement .

Where a debtor has a cross-claim against a creditor, the reduction or extinguishment of the creditor’s claim by the amount of his cross-claim is ‘set off’

  • Equity means equal
Legal Set Off – order 7 rule 6 Equitable Set Off -order 20 rule 19(3)
Sum must be ascertained or liquidated Sum need not be ascertained or an unliquidated sum
Court fees to be paid no need to pay court Fees
to be claimed as a right Relief depends on the discretion of the court
different transaction claim Same transaction claim
  • Banker’s set-off
  • Insolvency set-off
  • Contractual set-off

Categories: Difference

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