Counter-claim is a claim raised by a defendant against the plaintiff in the same suit, which has the effect of a cross-suit and is treated as a plaint in a separate action. Under Indian law, counter-claims were introduced by the CPC Amendment Act of 1976 through Order VIII Rules 6A to 6G of the Code of Civil Procedure, 1908, allowing a defendant to assert an independent claim against the plaintiff without filing a separate suit.
Legal definition
Order VIII Rule 6A of the Code of Civil Procedure, 1908 provides:
Order VIII Rule 6A — Counter-claim by defendant: (1) A defendant in a suit may, in addition to his right of pleading a set-off under Rule 6, set up, by way of counter-claim against the claim of the plaintiff, any right or claim in respect of a cause of action accruing to the defendant against the plaintiff either before or after the filing of the suit but before the defendant has delivered his defence or before the time limited for delivering his defence has expired, whether such counter-claim is in the nature of a claim for damages or not.
(2) Such 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 6B provides that the counter-claim must be filed against the plaintiff, and a defendant cannot file a counter-claim against a co-defendant. Rule 6C allows the plaintiff to file a written statement in reply to the counter-claim. Rule 6G permits the court to exclude a counter-claim from the suit if it raises issues that cannot be conveniently disposed of in the original proceedings.
How courts have interpreted this term
Ashok Kumar Kalra v. Wing Commander Surendra Agnihotri [(2020) 2 SCC 394]
The Supreme Court held that a counter-claim under Order VIII Rule 6A can be set up only against the claim of the plaintiff. A defendant cannot file a counter-claim against a co-defendant. The Court set aside the Gujarat High Court's decision that had permitted a defendant to assert claims against another defendant through a counter-claim, holding that the statutory language limits counter-claims to the plaintiff-defendant relationship.
Laxmidas Dayabhai Kabrawala v. Nanabhai Chunilal Achwal [AIR 1964 SC 11]
Though decided before the 1976 amendment, this Supreme Court decision recognised the principle underlying counter-claims by holding that a court could treat a set-off that exceeded the plaintiff's claim as a cross-suit. The 1976 amendment codified and expanded this principle by introducing the counter-claim provisions.
Ramesh Chand Ardawatiya v. Anil Panjwani [(2003) 7 SCC 350]
The Supreme Court held that a counter-claim is an independent cause of action and survives even if the plaintiff's suit is withdrawn or dismissed. The defendant's counter-claim must be decided on its own merits regardless of the fate of the original suit.
Why this matters
Counter-claims represent one of the most important procedural innovations in Indian civil litigation. Before the 1976 amendment, a defendant with a claim against the plaintiff had only two options: plead a set-off (limited to ascertained money claims) or file a separate suit. The counter-claim provision allows the defendant to raise any claim — monetary or non-monetary — against the plaintiff in the same proceedings, avoiding the expense, delay, and potential inconsistency of parallel litigation.
For practitioners, the timing of filing a counter-claim is critical. Under Rule 6A(1), the counter-claim must be filed before the defendant delivers his defence or before the time for delivering the defence expires. However, the Supreme Court has held that the court retains discretion to allow a counter-claim filed at a later stage if the interests of justice require it.
A significant practical consequence of the counter-claim being treated as a cross-suit is that it survives independently. If the plaintiff withdraws the suit, the counter-claim continues. If the suit is dismissed for default, the counter-claim must still be decided on merits. This gives the defendant substantial procedural protection once a counter-claim is validly filed.
Related terms
Related concepts:
Broader concepts:
Related procedures:
Frequently asked questions
Can a counter-claim be filed against a co-defendant?
No. The Supreme Court in Ashok Kumar Kalra v. Wing Commander Surendra Agnihotri (2020) held that a counter-claim under Order VIII Rule 6A can only be set up against the claim of the plaintiff, not against a co-defendant. If a defendant has a claim against another defendant, a separate suit must be filed.
Does the counter-claim survive if the plaintiff withdraws the suit?
Yes. Since a counter-claim has the same effect as a cross-suit, it is an independent proceeding. If the plaintiff withdraws the original suit or it is dismissed for default, the counter-claim must still be adjudicated on its merits. The defendant does not lose the right to have the counter-claim decided.
Is court fee payable on a counter-claim?
Yes. Since a counter-claim is treated as a plaint in a cross-suit under Order VIII Rule 6A(2), the defendant must pay court fee on the counter-claim. The court fee is computed in the same manner as it would be on a plaint, based on the value of the relief claimed.
Can the court refuse to entertain a counter-claim?
Yes. Under Order VIII Rule 6G, the court may, at any stage of the suit, exclude the counter-claim if it raises issues that cannot conveniently be disposed of in the original suit. In such cases, the defendant may file a separate suit on the counter-claim.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.