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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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