Law:

Section: 2,3,6,9

(a) Civil Procedure Code (V of 1908)--- ----O. XXXVII, Rr. 2 & 3, O. VIII, Rr. 6 & 9 & O. VII, R. 1---Money suit on the basis of cheque---Claim of set-off made in the written statement---Scope---Equitable set off, doctrine of---Applicability---Scope---Dismissal of suit for non-prosecution---Effect---Defendant submitted written statement and made claim of set-off therein---Trial Court dismissed suit due to non-prosecution without determining the claim of set-off---Validity---Claim of defendant with regard to set-off had been made in the written statement to counter the claim of plaintiff---Rules relating to written statement against the claim of set-off would apply in this regard---Plaintiff had not submitted any rejoinder or written statement to counter the claim of set-off in any manner on record---Trial Court while passing the impugned and decree had not considered the law in its true perspective---Claim of set-off was maintainable even in case suit was dismissed on merits or due to non-prosecution---Claim made in written statement under set-off had to be treated as independent plaint---Plaintiff was bound to submit his written statement against the written statement of defendant who had raised the claim of set-off failing which it would be treated that plaintiff had no defence---Claim of set-off had to be placed in written statement at the first instance---If defendant failed to submit his claim of set-off in written statement then he would be barred from raising such defence which was not claimed in the written statement---Claim of set-off could be represented at a subsequent stage after leave of the court---Doctrine of equitable set-off could be permitted on an equitable consideration of defendant to raise a plea of set-off even with regard to unascertained sum of money---Set-off could be claimed subject to condition that if there be some connections between plaintiff's claim for a debt and defendant's claim to a set-off then it would be inequitable for the defendant to prove the same through separate suit---Such kind of equitable set-off should be claimed by the parties arising out of same transactions or to a cross demands which were…

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