3.01 In civil law, set-off is mainly of a substantive nature1 and often operates outside court proceedings;2 however, the question whether a specific State or an arbitral tribunal has jurisdiction to adjudicate the issue of set-off may be of importance. This could be in relation to domestic issues; for instance, the cross-claim may be subject to a specialized court and therefore the State or an arbitral tribunal must decide whether it can adjudicate and what would be the effect of its decision or award on the status of the cross-claim. It might also, of course, be...
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