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      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?
      A At any time before the final order is passed; any amount including unascertained amounts Correct Answer Incorrect Answer
      B Within 30 days of service of summons; only secured amounts Correct Answer Incorrect Answer
      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 Correct Answer Incorrect Answer
      D Along with the written statement of defence; any cross-claim regardless of ascertainment Correct Answer Incorrect Answer
      E Only after the original claim is fully adjudicated; any type of claim against the bank Correct Answer Incorrect Answer

      Solution

      Section 19(6) provides that where the defendant claims to set off against the applicant's 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 19(7), this written statement has the same effect as a plaint in a cross-suit.

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