A counter claim is a cross-action raised by the defendant against the plaintiff in the law suit brought by the plaintiff. Recourse to counter claim is always made if the defendant alleges that he/she has a claim against the plaintiff on his/her own part, even if the allegation is meant only to serve as a form of defence against the principal action.
It is important to raise the counter claim, at the latest, with the statement of defence. In addition, the counter claim is only permissible if the same type of legal procedure is prescribed for both claim and counter claim (summary proceedings, ordinary proceedings etc.).
If the amount in dispute of the counter claim exceeds the jurisdiction of the court, the court must transfer both actions to a court of greater jurisdiction. There is usually a place of jurisdiction for the counter claim at the place of the principal action.