AAP Tax Law

Order XXVIII: Written Statement, Set-off and Counter-claim under the Supreme Court Rules, 2013

Order XXVIII governs how a defendant responds to allegations in a plaint, raises a set-off or counter-claim, and files subsequent pleadings in original suits before the Supreme Court of India. It contains ten rules addressing specific denials, admissions, cross-claims and procedural consequences.

These provisions form part of the Supreme Court Rules, 2013, framed under Article 145 of the Constitution of India, which empowers the Supreme Court, subject to the Constitution and applicable law, to make rules regulating its practice and procedure with the approval of the President.

Meaning of the principal legal terms

Written statement: The defendant's pleading responding to the plaint, stating which material facts are admitted, denied or not admitted and setting out the defence.

Set-off: A claim by the defendant to adjust an ascertained monetary debt owed by the plaintiff against the plaintiff's monetary demand, subject to the applicable procedural requirements.

Counter-claim: An independent claim asserted by the defendant against the plaintiff in the same suit, operating in the nature of a cross-suit and potentially permitting a common final judgment.

Order XXVIII: Rules 1 to 10

The following reproduces the substance of all ten rules, with descriptive headings for navigation.

Rule 1: Specific denial of facts

It shall not be sufficient for a defendant in his written statement to deny generally the facts alleged by the plaintiff but he shall deal specifically with each allegation of fact of which he does not admit the truth, except damages.

Rule 2: Denial must not be evasive

Where a defendant denies an allegation of fact he shall not do so evasively but shall answer the point of substance.

Rule 3: Effect of non-denial

Each allegation of fact in the plaint, if not denied specifically or by necessary implication, or not expressly stated to be not admitted in the pleading of the defendant, shall be taken to be admitted, but the Court may in its discretion require any fact so admitted to be proved otherwise than by such admission.

Rule 4: Claiming a set-off

Where the defendant claims to set-off against a demand by the plaintiff any ascertained sum of money, he may in his written statement, but not afterwards without the leave of the Court, state the grounds of his claim and the particulars of the debt sought to be set-off.

Rule 5: Effect of a set-off

The written statement containing the particulars mentioned in rule 4 of this order shall have the same effect as a plaint in a cross suit so as to enable the Court to pronounce a final judgment in respect both of the original claim and of set-off.

Rule 6: Reply to a set-off

The rules relating to a written statement by a defendant shall apply to a written statement by a plaintiff in answer to a claim of set-off.

Rule 7: Subsequent pleadings

No pleading subsequent to the written statement of a defendant other than by way of defence to a setoff shall be presented except by the leave of the Court and upon such terms as the Court may think fit, but the Court may at any time require a written statement or additional written statement from any of the parties and may fix a time for presenting the same.

Rule 8: Failure to file written statement

Where any party from whom a written statement is so required fails to present the same within the time fixed by the Court the Court may pronounce judgment against him or make such orders in relation to the suit as it thinks fit.

Rule 9: Counter-claim

The defendant, in addition to his right of pleading a set-off may set up by way of counter-claim against the claims of the plaintiff any right or claim in respect of a cause of action accruing to him either before or after the filing of the suit but before he has delivered his defence and before the time limited for delivering his defence has expired whether that counter-claim sounds in damages or not and the counter claim shall have the same effect as a cross-suit, so as to enable the Court to pronounce a final judgment in the same suit, both on the original claim and on the counter-claim.

Rule 10: Court may refuse a counter-claim

The Court may, if in its opinion the counter-claim cannot be disposed of in the pending suit or ought not to be allowed, refuse permission to the defendant to avail himself thereof, and require him to file a separate suit.

Practical effect of Order XXVIII

Rules 1 to 3 require precise and substantive responses to the plaint. An allegation not specifically denied, denied by necessary implication, or expressly marked as not admitted may be treated as admitted, although the Court may still require proof.

Rules 4 to 6 govern monetary set-off and the plaintiff's response. Rules 7 and 8 regulate later pleadings and the consequences of failing to submit a court-directed written statement. Rules 9 and 10 permit counter-claims within the specified timing conditions, while reserving to the Court the power to require a separate suit.

Official source: Supreme Court of India - Supreme Court Rules and amendment notifications. Consult the official rules and applicable amendments, practice directions and orders when preparing a pleading.