In the First Schedule, in Order VIII,-



(i)for the heading "WRITTEN STATEMENT AND SET-OFF", the heading "WRITTEN STATEMENT, SET-OFF AND COUNTER-CLAIM" shall be substituted;



(ii)rule 1 shall be re-numbered as sub-rule (1) of that rule, and-



(a)in sub-rule (1) as so re-numbered, the words "may, and, if so required by the Court," shall be omitted;



(b)after sub-rule (1) as so re-numbered, the following sub-rules shall be inserted, namely:-



"(2) Save as otherwise provided in rule 8A, where the defendant relies on any document (whether or not in his possession or power) in support of his defence or claim for set-off or counter-claim, he shall enter such documents in a list, and shall,-



(a) if a written statement is presented, annex the list to the written statement:



Provided that where the defendant, in his written statement, claims a set-off or makes a counter-claim based on a document in his possession or power, he shall produce it in Court at the time of presentation of the written statement and shall at the time deliver the document or copy thereof to be filed with the written statement;



(b) if a written statement is not presented, present the list to the Court at the first hearing of the suit.



(3) Where any such document is not in the possession or power of the defendant, he shall, wherever possible, state in whose possession or power it is.



(4) If no such list is so annexed or presented, the defendant shall be allowed such further period for the purpose as the Court may think fit.



(5) A document which ought to be entered in the list referred to in sub-rule (2), and which is not so entered, shall not, without the leave of the Court, be received in evidence on behalf of the defendant at the hearing of the suit.



(6) Nothing in sub-rule (5) shall apply to documents produced for the cross-examination of plaintiff's witnesses or in answer to any case set up by the plaintiff subsequent to the filing of the plaint, or handed over to a witness merely to refresh his memory.



(7) Where a Court grants leave under sub-rule (5), it shall record its reasons for so doing, and no such leave shall be granted unless good cause is shown to the satisfaction of the Court for the non-entry of the document in the list referred to in sub-rule (2).".



(iii)rule 5 shall be re-numbered as sub-rule (1) of that rule, and after sub-rule (1) as so re-numbered, the following sub-rules shall be inserted, namely:-



"(2) Where the defendant has not filed a pleading, it shall be lawful for the Court to pronounce judgment on the basis of the facts contained in the plaint, except as against a person under a disability, but the Court may, in its discretion, require any such fact to be proved.



(3)In exercising its discretion under the proviso to sub-rule (1) or under sub-rule (2), the Court shall have due regard to the fact whether the defendant could have, or has, engaged a pleader.



(4)Whenever a judgment is pronounced under this rule, a decree shall be drawn up in accordance with such judgment and such decree shall bear the date on which the judgment was pronounced.";



(iv)after rule 6, the following rules shall be inserted, namely:-



"6A.Counterclaim 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:



Provided that such counter-claim shall not exceed the pecuniary limits of the jurisdiction of the Court.



(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.



(3)The plaintiff shall be at liberty to file a written statement in answer to the counter-claim of the defendant within such period as may be fixed by the Court.



(4)The counter-claim shall be treated as a plaint and governed by the rules applicable to plaints.



6B.Counter-claim to be stated



Where any defendant seeks to rely upon any ground as supporting a right of counter-claim, he shall, in his written statement, state specifically that he does so by way of counter-claim.



6C .Exclusion of counter-claim



Where a defendant sets up a counter-claim and the plaintiff contends that the claim thereby raised ought not to be disposed of by way of counter-claim but in an independent suit, the plaintiff may, at any time before issues are settled in relation to the counter-claim, apply to the Court for an order that such counter-claim may be excluded, and the Court may, on the hearing of such application make such order as it thinks fit.



6D.Effect of discontinuance of suit



If in any case in which the defendant sets up a counter-claim, the suit of the plaintiff is stayed, discontinued or dismissed, the counter-claim may nevertheless be proceeded with.



6E.Default of plaintiff to reply to counter-claim



If the plaintiff makes default in putting in a reply to the counter-claim made by the defendant, the Court may pronounce judgment against the plaintiff in relation to the counter-claim made against him, or make such order in relation to the counter-claim as it thinks fit.



6F. Relief to defendant where counter-claim succeeds



Where in any suit a set-off or counter-claim is established as a defence against the plaintiff's claim, and any balance is found due to the plaintiff or the defendant, as the case may be, the Court may give judgment to the party entitled to such balance.



6G. Rules relating to written statement to apply



The rules relating to a written statement by a defendant shall apply to a written statement filed in answer to a counter-claim.";



(v)in rule 7, after the word "set-off", the words "or counter-claim" shall be inserted;



(vi)in rule 8, after the words "set-off", the words "or counter-claim" shall be inserted;



(vii)after rule 8, the following rule shall be inserted, namely:-



"8A.Duty of defendant to produce documents upon which relief is claimed by him.- (1) Where a defendant bases his defence upon a document in his possession or power, he shall produce it in Court when the written statement is presented by him and shall, at the same time, deliver the document or a copy thereof, to be filed with the written statement.



(2) A document which ought to be produced in Court by the defendant under this rule, but is not so produced, shall not, without the leave of the Court, be received in evidence on his behalf at the hearing of the suit.



(3) Nothing in this rule shall apply to documents produced,-



(a) for the cross-examination of the plaintiff's witnesses, or



(b) in answer to any case set up by the plaintiff subsequent to the filing of the plaint, or



(c) handed over to a witness merely to refresh his memory.";



(viii)in rule 9, after the word "set-off", the words "or counter-claim" shall be inserted;



(ix)in rule 10,-



(a) for the words "is so required", the words and figures "is required under rule 1 or rule 9" shall be substituted;



(b) for the words "fixed by the Court, the Court may", the words "permitted or fixed by the Court, as the case may be, the Court shall" shall be substituted;



(c) the words "and on the pronouncement of such judgment, a decree shall be drawn up" shall be inserted at the end.