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Lexibal > Notes > Written Statement & Set-Off Under CPC
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Written Statement & Set-Off Under CPC

Last updated: 2025/03/31 at 10:04 PM
Last updated: March 31, 2025 5 Min Read
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Introduction

A Written Statement is a formal response filed by the defendant to the plaint of the plaintiff in a civil suit. Order 8 of the Civil Procedure Code (CPC), 1908, governs the rules regarding the filing of a written statement, defenses available to the defendant, and the concept of set-off.

Contents
Introduction1. Written Statement (Order 8, CPC)Meaning of Written StatementTime Limit for Filing Written StatementEffects of Non-Filing of Written StatementCase Law: Salem Advocate Bar Association v. Union of India (2005)2. Essentials of a Written Statement1. Denial of Allegations (Order 8, Rule 3 & 4, CPC)Case Law: Balraj Taneja v. Sunil Madan (1999)2. Alternative & Additional Defenses (Order 8, Rule 2, CPC)3. Counter-Claim (Order 8, Rule 6-A, CPC)Case Law: Ramesh Chand Ardawatiya v. Anil Panjwani (2003)3. Set-Off (Order 8, Rule 6, CPC)Meaning of Set-OffTypes of Set-OffConditions for Legal Set-OffCase Law: Jitendra Kumar Khan v. Peerless General Finance (2013)4. Difference Between Set-Off & Counter-Claim5. Conclusion

Additionally, set-off is a legal provision that allows a defendant to claim an amount that the plaintiff owes to them, effectively reducing the claim of the plaintiff.


1. Written Statement (Order 8, CPC)

Meaning of Written Statement

A written statement is a document in which the defendant:

  • Admits or denies the allegations made in the plaint.
  • States additional facts in defense.
  • Raises legal objections (if any).

Time Limit for Filing Written Statement

  • As per Order 8, Rule 1, CPC, the written statement must be filed within 30 days from the date of service of summons.
  • However, the court may allow an extension up to 90 days in exceptional cases.

Effects of Non-Filing of Written Statement

  • If the defendant does not file a written statement, the court may proceed ex-parte (i.e., decide the case based only on the plaintiff’s submissions).
  • The defendant may also lose the right to defend.

Case Law: Salem Advocate Bar Association v. Union of India (2005)

  • The Supreme Court ruled that the 90-day limit is directory, not mandatory, and courts have discretion to allow late filing in exceptional cases.

2. Essentials of a Written Statement

1. Denial of Allegations (Order 8, Rule 3 & 4, CPC)

  • The defendant must specifically deny the allegations made in the plaint.
  • General or vague denials are not considered sufficient.
  • If a fact is not denied properly, it is presumed to be admitted (Order 8, Rule 5, CPC).

Case Law: Balraj Taneja v. Sunil Madan (1999)

  • The Supreme Court held that mere evasive denial is not sufficient; the defendant must provide a clear response to each allegation.

2. Alternative & Additional Defenses (Order 8, Rule 2, CPC)

  • The defendant can raise multiple defenses, even contradictory ones.
  • This includes legal defenses (jurisdiction, limitation, misjoinder of parties, etc.) and factual defenses (denying facts alleged by the plaintiff).

3. Counter-Claim (Order 8, Rule 6-A, CPC)

  • A counter-claim is a separate claim made by the defendant against the plaintiff.
  • It should arise out of the same transaction or subject matter as the plaintiff’s claim.

Case Law: Ramesh Chand Ardawatiya v. Anil Panjwani (2003)

  • The Supreme Court ruled that counterclaims must be entertained even if the defendant fails to file a written statement.

3. Set-Off (Order 8, Rule 6, CPC)

Meaning of Set-Off

  • Set-off allows the defendant to claim an amount that the plaintiff owes them, reducing the plaintiff’s claim.
  • It acts as a cross-claim in the same suit.

Types of Set-Off

  1. Legal Set-Off – Allowed under Order 8, Rule 6, CPC.
  2. Equitable Set-Off – Recognized under common law but not expressly provided in CPC.

Conditions for Legal Set-Off

  • The claim must be for an ascertained sum of money.
  • Both claims should be mutually recoverable (i.e., both parties should owe each other money).
  • The claim must be legally recoverable and due at the time of the suit.

Case Law: Jitendra Kumar Khan v. Peerless General Finance (2013)

  • The Supreme Court held that set-off is not allowed for an unliquidated claim (a claim that is uncertain in amount).

4. Difference Between Set-Off & Counter-Claim

FeatureSet-OffCounter-Claim
NatureDefensiveAggressive
Independent Suit?NoYes, it can be treated as an independent suit
ScopeLimited to the plaintiff’s claimCan exceed the plaintiff’s claim
Separate Filing Needed?NoYes, if not included in the written statement

5. Conclusion

The written statement is a crucial part of civil litigation as it enables the defendant to respond to the plaintiff’s allegations and assert defenses. The provision for set-off ensures that the defendant’s claims are also adjudicated in the same suit, avoiding multiple litigations. Courts in India have adopted a liberal approach to amendments and counter-claims, ensuring that justice is served efficiently.

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