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    Question

    When a counterclaim is set up in a suit, what happens to

    the counterclaim if the suit is dismissed?
    A Counterclaim will be dismissed Correct Answer Incorrect Answer
    B Counterclaim can be proceeded with Correct Answer Incorrect Answer
    C A new suit can be presented for counterclaim Correct Answer Incorrect Answer
    D The court directs the counterclaim to be freshly instituted Correct Answer Incorrect Answer
    E Counterclaim is stayed Correct Answer Incorrect Answer

    Solution

    Indian Partnership Act Order VIII Rule 6D Effect of discontinuance of suit.— If in any case in which the defendant sets up a counterclaim, the suit of the plaintiff is stayed, discontinued or dismissed, the counter-claim may nevertheless be proceeded with.

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