Question

Identify a case where set off can be pleaded

• A. Claim for un liquidated damages
• B. Suit for recovery of ascertained sum of money
• C. Suit for a sum legally non-recoverable
• D. None of the above

Hint:

Remember the cardinal rule for legal set-off: it must be a "money vs. money" claim, and both sums must be 'ascertained' or fixed. You cannot set off a claim for uncertain damages against a claim for a fixed debt.

Answer 1

The Correct Option is B

The core test for a legal set-off is whether both the plaintiff's claim and the defendant's counter-claim are for a fixed, ascertained sum of money.

1. Unliquidated damages: Fails the test since the amount is not fixed in advance.
2. Ascertained sum of money: Satisfies the test directly, this is the money-suit scenario Order VIII, Rule 6 is built around.
3. Legally non-recoverable sum: Fails a separate condition, the amount must also be legally recoverable, so even an ascertained but time-barred sum cannot be set off.

Only the option describing an ascertained, recoverable sum satisfies both conditions, so the correct answer is Suit for recovery of ascertained sum of money.

Answer 2

Set-off exists to avoid multiplicity of suits by letting a defendant adjust a cross-debt within the same proceeding, and this purpose explains why the law insists the amount be fixed and recoverable.

1. Unliquidated damages: Allowing a vague, unquantified counter-claim to be set off would force the court to first assess damages before it could even balance the accounts, defeating the goal of a quick, simple adjustment. This is why the law excludes unliquidated claims.
2. Suit for recovery of ascertained sum of money: Because the amount is already fixed, the court can simply net one sum against the other without any additional inquiry, which is exactly the convenience set-off is meant to provide.
3. Suit for a sum legally non-recoverable: Permitting a legally non-recoverable sum, such as a time-barred debt, to be set off would let a defendant enforce indirectly what the law would not allow him to enforce directly by a separate suit, so this is rightly excluded.

Only the ascertained, legally recoverable sum serves the purpose set-off is designed for.

Therefore, the correct answer is Suit for recovery of ascertained sum of money.