Definition
A defendant's counterclaim against the plaintiff for a debt or damages, which the court may allow to reduce or extinguish the plaintiff's claim. In DRT proceedings, borrowers sometimes plead set-off of claims (e.g., for overcharged interest, wrongful actions) against the bank's recovery claim. Unlike a counter-claim, a set-off must be an existing liquidated claim.
Related Terms
Counter-ClaimDRTOriginal Application
Need Expert Advice on Set-Off?
For specific advice on how Set-Off applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates