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Under Order 8 Rule 6 C.P.C. set-off may be permitted if –
The suit is for recovery of property
Set-off claimed by the defendant is ascertained sum of money
Value of property recoverable is less than rupees two lacs
Defendant presents a written statement of the suit
Order 8 Rule 6 – ORDER VIII 1 [Written statement, set-off and counter-claim] 6. Particulars of set-off to be given in written statement.—(1) Where in a suit for the recovery of money the defendant claims to set-off against the plaintiff's demand any ascertained sum of money legally recoverable by him from the plaintiff, not exceeding the pecuniary limits of the jurisdiction of the Court, and both parties fill the same character as they fill in the plaintiff's suit, the defendant may, at the first hearing of the suit, but not afterwards unless permitted by the Court, presents a written statement containing the particulars of the debt sought to be set-off.
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