6 Major Differences between Legal Set-Off and Equitable Set-Off

6 Major Differences between Legal Set-Off and Equitable Set-Off are listed below:

Legal Set-Off:

1. Rule-6 of Order-8 explains about the legal set-off.

2. In India, legal set-off is allowed in majority cases.

3. Legal set-off must be for an ascertained sum or money.

Image Source: 185.26.182.219

4. It can be claimed as of right. The Court is bound to entertain and adjudicate upon it.

5. It is not necessary in a legal set-off that the cross-demands arise out of the same transaction

6. Court-fee is required for a claim of legal set-off.

Equitable Set-Off:

1. Rule-19 (3) of Order 20 explains about Equitable Set-off.

2. Equitable set-off was allowed by the Court of Common Law in England. Very rarely in India too, it is allowed.

3. Equitable Set-off may be allowed even for unascertained sum of money.

4. It cannot be claimed as of right. The Court has discretion to refuse to adjudicate upon it.

5. Equitable set-off can be allowed only when the cross-demands arise transaction

6. No court fee is required in case of equitable set-off.