Counter Claim - Law question

Civil Procedure Code - 2019 for 10 marks

What is counter claim?

Meaning of Counter Claim: This is a claim made by the defendant in a suit against the plaintiff. This claim is independent of, and separable from the claim of the plaintiff. This can be enforced by a cross-action. It is treated as a plaint of the defendant against the plaintiff and governed by the rules of the plaint. 

Filing a Counterclaim: Counterclaims can be filed under Order 8 Rule 6A of the Civil Procedure code. Counterclaim can be filed by defendant in a suit against the plaintiff in respect of the cause of action accruing either before or after filing the suit provided such claim is not barred by limitations. Counterclaim can be setup in three different modes as follows:

1. Counterclaim can be made in the written statement made by the defendant

2. By amending the written statement with the leave of the court

3. In a subsequent pleading under order 8 rule 9 of CPC.

Effects of Counterclaim: The CPC has made it clear that the counterclaim has to be treated as cross-suit and to be tried along with the original claim. Counterclaim is to be governed by the rules of the pleading. It will also be considered as plaint by the defendant against the plaintiff. 

Important Case references: 

1. Laxmidas Vs. Nanabhai, AIR 1964, SC - right to make counterclaim made statutory.

2. The Amendment Act 1976 inserting rule 6A to 6G in the CPC

3. In Re Amichand Pyrelal, 1977