'In civil suits sometimes Court allows the defendants claims to set-off against the plaintiff demand any ascertained sum of money legally recoverable by him from plaintiff.' In light of the statement discuss whether in I

Rule 6 of Order VIII of Code of Civil Procedure, 1908 deals with set-off which is a reciprocal acquittal of debts between the plaintiff and defendant. It has the effect of extinguishing the plaintiff's claim to the extent of the amount claimed by the defendant as a counter claim. In the case of Jitendra Kumar Khan and Ors. vs. The Peerless General Finance and Investment Company Limited and Ors. (07.08.2013 - SC): 2013 ALL SCR 3259, it has been decided that Equitable set-off is different than the legal set-off; that it is independent of the provisions of the Code of Civil Procedure; that the mutual debts and credits or cross-demands must have arisen out of the same transaction or to be connected in the nature and circumstances; that such a plea is raised not as a matter of right; and that it is the discretion of the court to entertain and allow such a plea or not. In view of the above discussion, it can be said that in India distinction between Legal and Equitable set-off is recognised.