Propositions are:<br>1. Set-off and counter-claim arises out of the same transaction.<br>2. Set-off should not be barred on the date of the suit while counter-claim should not be barred on the date of filing of written statement.<br>3. Claim for set-off cannot exceed plaintiff's claim, whereas counter-claim can exceed the plaintiff's claim.<br>In respect of the aforesaid which is correct:

Correct Answer: 2 and 3 are correct 1 is incorrect