In a suit for recovery of Rs. 25 lakh, the Defendant files its written statement and pleads that it does not owe any money to the Plaintiff but in fact, it is entitled to recover the sum of Rs. 40 lakh from the Plaintiff. The Defendant, however, does not file a counter claim. Can the Defendant file the counter claim at a subsequent stage in the suit or file a fresh suit seeking recovery of Rs, 40 lakhs?

Correct Answer: The Defendant can file both either a counter claim or a suit