What's Permissive Counterclaim?

Permissive counterclaim is a counterclaim which neither arises out of nor is necessarily connected with the subject matter of the opposing party‘s claim. It is not barred even if not set up in the action.

The requirements of a permissive counterclaim are:

[1] It does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction;
[2] It must be within the jurisdiction of the court wherein the case is pending and is cognizable by the regular courts of justice;
[3] It does not arise out of the same transaction or series of transactions subject of the complaint, and;
[4] Payment of correct docket fee, which is not required for compulsory counterclaims.

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