Plea Of Adjustment Should Be Raised Before Institution Of Suit

Case: Southern Dredging Co (P) Ltd v. K. Muhammed Haji

Coram: Justice A. Badharudeen

Case No.: OP(C) NO. 2434 OF 2021

Court Observation: “The legal position regarding adjustment is no more res integra on the point that a plea of adjustment by payment is definitely and essentially a different plea and can be pressed into service only if the same was raised before the institution of the suit and not afterwards.”

“If he could institute a separate suit for realisation of the amount due to him, it is a case of set-off. If the adjustment was made prior to the filing of the suit by the plaintiff and a plea is taken to that effect, it would be a plea of adjustment by payment.”

“The Court in the first place must decide that the other side is liable and then, it should proceed to assess and quantify the liability. Till the said determination, there is no liability at all upon the other side and no `adjustment’ in regard to the damages which is not quantified is liable to sustain”

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