(a) In any action brought for the recovery of a debt, if there are mutual debts between the plaintiff or plaintiffs, or any of them, and the defendant or defendants, or any of them, one debt may be set off against the other.

(b) No debt claimed by assignment may be set off unless the plaintiff had notice, at the commencement of the action, that the debt was due the defendant.

(c) If it appears upon the trial that the plaintiff is indebted to the defendant, the court shall give judgment for the defendant to recover the balance due of the plaintiff with his costs, except that no judgment may be given against the plaintiff to recover the balance of a debt due only a part of the defendants.

(1949 Rev., S. 7860; March, 1958, P.A. 27, S. 62; 1959, P.A. 28, S. 110; P.A. 82-160, S. 56.)

History: 1959 act deleted reference to judgment by justice of the peace; P.A. 82-160 rephrased the section and inserted Subsec. indicators.

See Sec. 37-2 re limitation on amount of interest, discount or damages for detention of money which may be recovered by a borrower.

“Mutual debts” defined. 7 C. 223; 8 C. 328; 81 C. 244; 88 C. 198; 108 C. 499; 114 C. 564. The debt set off must have been due and payable when the suit was brought. 32 C. 141, but see 108 C. 499. Suit by executor. 34 C. 66; 1 R. 428. Claims for unliquidated damages. 9 C. 433; 31 C. 343. Suit by receivers of bank, set-off of bills of bank disallowed. 22 C. 644. Interest on balance. 32 C. 564. Judgment debt; demand in plea for judgment for defendant. 28 C. 120. In a suit upon a partnership claim, defendant cannot set off a claim against one of the partners individually. 43 C. 80. Insolvency of savings bank; debtor cannot set off the amount of his deposit. Id., 155. Obligor in bond to a town in a criminal cause cannot set off a claim against the town. 45 C. 353. Debt against insolvent estate, barred by failure to present, may still be used as an offset. 46 C. 277. A defendant pleading set-off is virtually a plaintiff as respects that claim. 49 C. 91. Courts of equity sometimes allow a set-off where a court of law would not. Id., 569. Statutory right of set-off is reinforced and extended by practice act. 50 C. 301; 108 C. 499. Delinquent tax collector cannot set off his claim for salary. 51 C. 172. Lessee of administrator cannot set off debt of intestate against rent. 53 C. 500. Fundamental principles and tests of set-off. 55 C. 127; 108 C. 499. In an action of covenant against encumbrances, unpaid purchase notes of plaintiff may be used as a set-off. 55 C. 431. Set-off not recognized in an action for tort. 66 C. 508; 82 C. 361; 39 C. 366. In action by trustee in insolvency. 65 C. 76. Right of set-off in general; in action by receiver of bank. 88 C. 186; Id., 198. Personal debt of trustee cannot be set off in action by him as trustee. 86 C. 548. Is matter of defense. 82 C. 175. Unliquidated damages in contract may be set off in action on foreign judgment; equitable rights. 81 C. 244. In action against guarantor, he cannot set off debt owed him by plaintiff. 68 C. 525. Set-off of mutual debt not matured permitted where one of mutual debtors has been adjudicated insolvent; statute is not exclusive in its scope. 108 C. 499. Allegations of answer cannot operate as claim for set-off unless accompanied by claim for affirmative relief. 109 C. 5. Set-off between parties distinguished from an accord and satisfaction. Id., 245. Trust company may not set off its own deposits with private banker against certificate of deposit issued to private banker and deposited with State Treasurer in lieu of private banker's bond. 114 C. 560. Where no equitable considerations are involved, defendant under statute can set off debts only when they are presently due him. 117 C. 280; 128 C. 10. Set-off not allowed bank on note against maker's deposit which, before note matured, was assigned to one who paid valid consideration, neither maker nor bank being insolvent. Id., 276. Maker of note which had not matured when trust company suspended held entitled to set off deposit when receiver sued on note. 118 C. 42. Assignee of chose in action takes subject to equities and defenses arising before receipt of notice of assignment; no set-off against assignee where defendant at time of notice of assignment had no right to recover from assignor. 128 C. 4. Set-off distinguished from counterclaim; condition precedent to legal set-off is that it shall be in answer to suit on a debt. 130 C. 210. Cited. 191 C. 104; 207 C. 483.

Cited. 6 CA 106; Id., 417; 12 CA 353; 15 CA 362; 40 CA 536; 44 CA 759.

Cited. 3 Conn. Cir. Ct. 427. Unliquidated assigned claim cannot be set off in action in assumpsit. 4 Conn. Cir. Ct. 581.