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What is a Legal Set?
Set off is put forth by the defendant in a money suit which helps in reduction of the plaintiff’s claim. If the plaintiff seeks the recovery of one lakh from the defendant and the defendant in his written statement claims fifty thousand from the plaintiff, it sums to a set off.
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Based on the nature, there are generally two type of set off viz.
Legal Set Off
The defendant pays the court fee on ascertained money claim as in the case of the plaintiff. The court will look into the matter as well. Claiming a legal set off is the legal right of the defendant.
Equitable Set Off
The defendant cannot claim equitable set off in his written statement as a matter of right. This type of set off arises when the claims of both parties are in one same transaction. The money is not an ascertained one.
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