Tenn. Code Ann. § 16-15-725: Judgment for defendant on setoff

(a) If the defendant pleads a setoff to the plaintiff's debt, and it appears that there is a balance due in favor of the defendant, the general sessions court shall enter up judgment in favor of the defendant and against the plaintiff for the balance. If the plaintiff fails in establishing any demand against the defendant, the defendant shall have a judgment against the plaintiff for the amount that the proof upon the defendant's cross action shows that the defendant is entitled to, with costs.

(b) If the residue upon the defendant's setoff, after satisfying the plaintiff's debt, exceeds the court's jurisdiction, the defendant may enter on the court's docket a satisfaction of so much of the defendant's claim as the amount of the plaintiff's demand, as ascertained by the court, and tender the plaintiff a receipt for the amount thus setoff, in which case judgment shall be rendered in favor of the defendant for costs.