Gunjan Sinha Jain vs Registrar General,High Court Of Delhi on 9 April, 2012
Author
set off or adjusted. Apart from the rule
enacted in Rule 6 abovesaid, there exists
a right to set-off, called equitable,
independently ... said
discretion has to be exercised in an equitable
manner. An equitable set-off is not to be
allowed where protracted enquiry is needed
issues arising thereunder and not
on the validity of set-off and the set-off claim was pending in the Pre-
Institution Mediation proceedings ... legal principles of the
doctrine of equitable set off and legal set off. Conscious of the fact and
noting that provisions of CPC are inapplicable
said discretion has to be exercised
in an equitable manner. An equitable set-off is not to be allowed
where protracted enquiry is needed ... set off or adjusted. Apart from the rule
enacted in Rule 6 abovesaid, there exists a right to set-off,
called equitable, independently
set-
off."
18. What the rule deals with is legal set-off. The claim sought to be set-
off must be for an ascertained ... equitable set-offs at all. The
most important distinction between a legal set-off as mentioned in the
Code, and an equitable set-off
set off.
23. The distinction between the two has, however to be
borne in mind. The difference between the legal set off
and an equitable ... court exists to grant equitable set off if
special circumstances permit even in a case where claim
for set off is time barred
inadvertence the petitioners did not seek the relief of 'equitable set-
off'. It is noted that on August 27, 2019 the respondent / STCI ... seeking to amend the SOD.
By virtue of the said amendment, equitable set-off was sought to be
added in the SOD thereby seeking
nature of either
payment or adjustment or set-off (including equitable set-off) or counter-
claim. The reason why the defences are separately classified ... plea of adjustment is the same as the plea of equitable
set-off. Though the effect of both the pleas is extinguishment of the claim
equitable set of the court held as follows:-
"16. From the aforesaid enunciation of law it is quite clear
that equitable set-off ... said discretion has to be exercised in an equitable manner. An
equitable set-off is not to be allowed where protracted enquiry
is needed
cross action. (pp. 359-360) "Statutory set-off - The right or remedy of set off in actions at law is purely statutory ... enactment by statute of the remedy of set-off, which was designed by allowing set-offs in actions at law to supersede, or obviate