Order 8 CPC – Written Statement, Set-off and Counterclaim Explained The Code of Civil Procedure, 1908 (CPC) governs civil proceedings in India. One of its most important provisions is Order 8 CPC, which deals with the written statement, set-off, and counterclaim filed by the defendant in response to the plaintiff’s plaint. This article provides a comprehensive guide to Order 8 CPC, covering rules, requirements, case laws, format, and distinctions between set-off and counterclaim. What is a Written Statement under Order 8 CPC? A written statement is the pleading of the defendant in response to the allegations made by the plaintiff in the plaint. • It contains admissions, denials, legal objections, and sometimes new facts in favor of the defendant. • All the general rules of pleadings apply to a written statement. ✓ In short, the written statement is the defendant’s side of the story. When Should a Written Statement be Filed? (Order 8 Rule 1 CPC) • The defendant must file the written statement within 30 days from the date of service of summons. • The court may extend this period up to 90 days, but not as a routine matter. Case Laws • Kailash v. Nankhu (2005 SC): The 90-day limit is directory, not mandatory. • Salem Advocate Bar Association v. Union of India (2005 SC): Court has discretion to extend beyond 90 days in exceptional cases. ✓ However, courts discourage unnecessary delays to avoid defeating the purpose of speedy trials. Format of a Written Statement A written statement usually follows this format: • Court name • Parties (Plaintiff vs Defendant) • Admissions and denials (point-wise reply to plaint) • Additional pleas (new facts or defenses) • Prayer for dismissal of suit • Verification and signature by defendant and advocate Order 8 Rule 1A – Duty of Defendant to Produce Documents If the defendant relies on any document, he must: 1. List such documents in writing, 2. Submit originals and copies with the written statement, 3. Mention where the document is if not in his possession, 4. Failing which, he cannot use the document later (unless permitted by the court). Exceptions • Cross-examination documents, • Documents used only to refresh memory. Example: If Defendant B claims he already repaid ₹3 lakh to Plaintiff A and has a receipt, he must file that receipt with his written statement. Order 8 Rule 2 – New Facts Must be Specially Pleaded The defendant must clearly plead new facts like: • Limitation (time-barred claim), • Fraud or illegality, • Payment already made, • Contract already performed, • Release from liability. This ensures no surprise defense during trial and that the plaintiff knows the real issues. Order 8 Rules 3 to 5 – Specific Denial • Defendant must specifically deny each allegation. • General denials are not enough. • If a fact is not specifically denied, it is deemed to be admitted. Example: • Plaintiff: “Defendant borrowed ₹1,00,000 on 1st Jan 2023.” • Defendant (wrong denial): “I deny the allegations.” • Defendant (correct denial): “I deny borrowing ₹1,00,000 or any other amount from the plaintiff on 1st Jan 2023 or on any date.” Set-Off under Order 8 Rule 6 CPC A set-off means adjusting a mutual debt against the plaintiff’s claim. Conditions for Set-Off 1. Plaintiff’s suit must be for money recovery, 2. Amount must be ascertained, 3. Must be legally recoverable, 4. Between the same parties in the same legal character, 5. Must not exceed the court’s pecuniary jurisdiction. Types of Set-Off 1. Legal Set-Off – For ascertained sums, claimed as a matter of right. 2. Equitable Set-Off (Order 20 Rule 19(3)) – For unascertained sums, arising from the same transaction, allowed at the discretion of the court. Case Law: Harishchandra Dwarkadas v. Firm Murlidhar (1957) – Even if plaintiff’s suit fails, the defendant’s valid set-off can still be decreed. Counterclaim under Order 8 Rules 6A–6G CPC A counterclaim is the defendant’s own claim against the plaintiff, filed along with the written statement. Features of Counterclaim • Can be for any cause of action, not just money. • May arise from the same transaction or different transaction. • Must arise before filing the written statement. • Treated like a cross-suit. Examples • Plaintiff sues for injunction, defendant counterclaims for possession. • Plaintiff sues for defamation damages, defendant counterclaims for his own defamation damages. ✓ Even if plaintiff withdraws his suit, the counterclaim survives and can be decided on merits. Distinction Between Set-Off and Counterclaim The distinction between a set-off and a counterclaim is important under the Code of Civil Procedure. A set-off is in the nature of a defensive plea, where the defendant seeks to adjust a specific, ascertained sum of money against the plaintiff’s claim. It is permitted only in suits for recovery of money, provided the claim is legally recoverable, arises out of the same transaction, and falls within the pecuniary jurisdiction of the court. The Supreme Court in Union of India v. Karam Chand Thapar & Bros. (1969) explained that a set-off is limited in scope and operates as a shield. In contrast, a counterclaim is much wider in scope and is treated as a cross-suit. It allows the defendant not only to resist the plaintiff’s claim but also to enforce his own independent cause of action against the plaintiff. Unlike set-off, a counterclaim need not arise from the same transaction and is not confined to money claims; it may extend to damages, possession, declaration, or injunction, provided the cause of action accrued before the filing of the written statement. The Supreme Court in Kailash v. Nankhu (2005) emphasized that counterclaims ensure comprehensive adjudication by avoiding multiple suits. Moreover, in Laxmidas v. Nanabhai (1964) it was held that a counterclaim can survive even if the plaintiff’s suit is withdrawn or dismissed. Thus, while a set-off is restricted to a defensive adjustment of monetary claims, a counterclaim is both defensive and offensive in nature, enabling the defendant to obtain a decree…