The difference between set-off and counter-claim lies in their nature and purpose in legal proceedings:
O 8 R 6 of CPC provides for set off:
Set-off: Set-off refers to the adjustment or cancellation of mutual debts or claims between parties involved in a legal dispute. It allows a defendant to reduce or eliminate their liability by setting off a claim they have against the plaintiff. In other words, it is a defense mechanism used by the defendant to counterbalance the plaintiff's claim by asserting their own claim against the plaintiff. The purpose of set-off is to achieve a fair and equitable resolution of the dispute by considering the mutual claims between the parties.
