Counterclaim in Civil Procedure Code 1908, Order VIII Rule 6 A:

1. Definition and Purpose:

   • A counterclaim is essentially a claim made by the defendant against the plaintiff within the same suit.
   • It's a legal mechanism designed to allow the defendant to assert his own claims, which arise out of the same transaction or occurrence as the plaintiff's claims.

2. Filing a Counterclaim:

   • The defendant includes the counterclaim in their written statement in response to the plaintiff's original complaint.
   • It should be related to the subject matter of the plaintiff's claim and must arise out of the same transaction or series of transactions.

3. Conditions for a Valid Counterclaim:

   • The counterclaim must arise in respect of the same transaction or occurrence or series of transactions or occurrences.
   • It should not exceed the pecuniary limits of the jurisdiction of the court.
   • It should not require the presence of third parties as parties to the counterclaim.

4. Admission or Denial:

   • The plaintiff can admit or deny the counterclaim in their reply to the defendant's written statement.
   • If admitted, the court may pass a decree in favor of the defendant for the counterclaim.
   • If denied, the court will try both the original claim and the counterclaim simultaneously.

5. Effect on the Trial:

   • The counterclaim is treated as a cross-action and is tried as if it were an independent suit.
   • The court may, at its discretion, consolidate the original claim and the counterclaim for a more expeditious trial.

6. Relief Sought in Counterclaim:

   • The defendant, through the counterclaim, can seek specific relief, damages, or any other appropriate legal remedy.

7. Judicial Discretion:

   • The court has the discretion to strike out or limit the scope of a counterclaim if it appears scandalous, frivolous, or vexatious.

8. Completeness of Adjudication:

   • The inclusion of counterclaims ensures that all aspects of a dispute between the parties are dealt with comprehensively, avoiding the need for multiple legal proceedings.

9. Impact of Counterclaim:
   The impact of a counterclaim is akin to that of a cross-suit and is treated on par with a plaint. In the instance of Manikchand Fulchand Katariya v. Lalchand Harakchand Katariya, the court affirmed that a counterclaim can result in a decree for possession favoring the defendant, illustrating its applicability beyond monetary claims.

   In contrast to set-off, the processing of a counterclaim is contingent upon the continuation of the plaintiff's suit. If the plaintiff's suit is discontinued, dismissed, or stayed, the counterclaim will similarly not proceed.

10. Exclusion of Counterclaim:
    In accordance with Rule 6C, should the plaintiff assert that the suit ought to be regarded as a standalone action rather than a counterclaim, the plaintiff can make an application to the court. This application can be submitted at any time before the settlement of issues, and the decision to grant such an order lies within the discretion of the court.

In summary, the counterclaim provision in Order VIII Rule 6 A of the Civil Procedure Code 1908 serves the purpose of providing a comprehensive and efficient resolution of disputes by allowing the defendant to assert their own claims within the same legal proceedings initiated by the plaintiff.

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