Counterclaims and third parties

(1) The Court or judge shall have power to grant to any defendant in respect of any equitable estate or right or other matter of equity, and also in respect of any legal estate, right or title claimed or asserted by him25 (a) all such relief against any plaintiff or petitioner as the parties defendant has properly claimed by his pleading, and as the Court or judge might have granted in any suit instituted for that purpose by that defendant against the same plaintiff or petitioner; and (b) all such relief relating to or connected with the original subject of the cause or matter, claimed in like manner against any other person, whether already a party to the cause or matter or not, who has been duly served with notice in writing of the claim pursuant to rules of court or any order of the Court, as might properly have been granted against that person if he had been made a defendant to a cause duly instituted by the same defendant for the like purpose. (2) Every person served with any such notice as aforesaid shall thence-forth be deemed a party to the cause or matter with the same rights in respect of his defence against the claim as if he had been duly sued in the ordinary way by the defendant.