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 |
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Tags: Distinction Between