In a civil suit, a counterclaim is a separate and independent claim filed by the defendant against the plaintiff within the same legal proceeding. It allows the defendants to seek their own relief, rather than merely defending against the plaintiff’s allegations.
The concept was introduced into the Code of Civil Procedure, 1908 (CPC), in 1976 through Order 8, Rules 6A to 6G. The primary purpose is to avoid a multiplicity of lawsuits by allowing connected disputes between the same parties to be resolved together.
A counterclaim is treated as a separate plaint, where the defendant can seek remedies like damages, injunctions, or recovery of property.
When Must a Counterclaim Be Filed?
The timing of a counterclaim is a crucial and often contented issue.
- The Statutory Rule: Order 8, Rule 6A of the CPC states that a defendant can file a counterclaim before or at the time of filing their written statement, but not after the time limit for filing the written statement has expired.
- The Supreme Court’s Interpretation: The Supreme Court, in the landmark case of Ashok Kumar Kalra v. Wing Commander Surendra Agnihotri [(2019) 4 KER LT 790], clarified this rule. It held that the statutory provision is not an absolute bar. The Court laid down that a counterclaim can generally be filed after the written statement, but before the issues are framed. Even after issues are framed, a court has the discretion to allow a counterclaim in “extraordinary situations” to prevent injustice, after considering factors like the reason for the delay, potential prejudice to the plaintiff, and the cost of forcing the defendant to file a fresh suit.
The Cause of Action for a Counterclaim
A counterclaim does not need to arise from the same cause of action as the plaintiff’s suit. However, the cause of action for the defendant’s counterclaim must have accrued before the defendant has delivered their defence (i.e., filed the written statement).
Modes of Presenting a Counterclaim
A defendant can present a counterclaim in several ways:
- As part of the Written Statement: This is the most common and prescribed method.
- By Amending the Written Statement: With the court’s permission under Order 6, Rule 17, a defendant can amend their written statement to include a counterclaim.
- As a Subsequent Pleading: In certain circumstances, a counterclaim may be raised in a subsequent pleading with the court’s leave under Order 8, Rule 9 of the CPC.
Conclusion
A counterclaim is a powerful procedural tool for a defendant. While it should ideally be filed along with the written statement, the Supreme Court has clarified that courts have the discretion to accept it at a later stage, generally before issues are framed, to ensure all related disputes are adjudicated efficiently.
