740

No. 3 of 1901.

CODE OF CIVIL PROCEDURE.

Defence of set-off to claim for money. H.K. Code, s. 36 (1).

Making of counter-claim, etc., in lieu of set-off. H.K. Code, s. 36 (2).

Cases in which counterclaim may be allowed, and procedure thereon. H.K. Code, s. 37.

pursuant to an order under the provisions of section 23, he may (unless the court otherwise orders) by notice in writing appropriate the whole or any part of such money, and any additional payment if necessary, to the whole or any specified portion of the plaintiff's claim, or if he pleads a tender may by his pleading appropriate the whole or any part of the money in court as payment into court of the money alleged to have been tendered; and the money so appropriated shall thereupon be deemed to be money paid into court pursuant to sections 152 to 157 relating to money paid into court, or money paid into court with a plea of tender as the case may be, and shall be subject in all respects thereto.

[ss. 159 and 160, rep. Law Revision Ordinance, 1939.]

161.—(1) A defence of set-off to a claim for money, whether in debt or in damages, must be accompanied by a statement of the particulars of the set-off.

(2) If it is pleaded as a sole defence it must also, unless it extends to the whole amount of the plaintiff's claim, be accompanied by payment into court of the amount to which, on the defendant's showing, the plaintiff is entitled; and in default of such payment the defendant shall be liable to bear the costs of the action, even if he succeeds in his defence to the extent of the set-off pleaded.

Counterclaim.

162. Where the defendant raises a defence by way of set-off which in the opinion of the court is not admissible as set-off, the court may, either before or at the trial, on his application, give him liberty to withdraw such defence and to make a counter-claim or bring a cross-action; and may make such order for the trial of the action and the counterclaim or cross-action together or otherwise and in such manner and on such terms as to costs and other matters, as may seem just.

163.-(1) Where a defendant in his statement of defence raises any specific defence and it appears to the court that, on such defence being established, he may be entitled to relief against the plaintiff in respect of the subject-matter of the action, the court may, on the application of the defendant either before or at the trial, if in the circumstances of the case it thinks fit, give liberty to the defendant to file a counterclaim by a cross-state-

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