Question

Under Section 19(6), at what stage must a defendant present his claim of set-off, and what is the nature of the amount that can be set off?

Q: Answer-Under Section 19(6), at what stage must a defendant present his claim of set-off, and what is the na...

Section 196 provides that where the defendant claims to set off against the applicants demand any ascertained sum of money legally recoverable by him from the applicant, the defendant may, at the first hearing of the application but not afterwards unless permitted by the Tribunal, present a written statement containing particulars of the debt sought to be set off along with original documents and evidence. The key requirements are i the sum must be ascertained liquidated, not contingent ii it must be legally recoverable by the defendant from the applicant and iii it must be raised at the first hearing. Under Section 197, this written statement has the same effect as a plaint in a cross-suit.

A At any time before the final order is passed; any amount including unascertained amounts

B Within 30 days of service of summons; only secured amounts

C At the first hearing of the application, unless permitted by the Tribunal to do so later; only an ascertained sum of money legally recoverable by him from the applicant

D Along with the written statement of defence; any cross-claim regardless of ascertainment

E Only after the original claim is fully adjudicated; any type of claim against the bank

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