Description

Order 20A of the Civil Procedure Code (CPC) deals specifically with costs related to civil proceedings. In legal terms, costs refer to the expenses incurred by parties in a lawsuit, which may include filing fees, lawyer’s fees, and other litigation-related expenses. This order is essential for determining who should bear these costs, ensuring fairness in the legal process.

Key Provisions of Order 20A - Costs

Order 20A was inserted into the CPC in 2002 through an amendment and focuses on the issue of costs after the conclusion of a civil suit.

Rule 1: Costs in All Suits

• General Rule on Costs:
  The rule provides that in every suit or proceeding, the costs of the suit are at the discretion of the court. The general rule is that the losing party will pay the costs of the successful party, but the court can vary this based on the circumstances of the case.

  • The court is not bound by any specific formula but instead looks at the circumstances surrounding the suit, including the conduct of the parties during the litigation process.

• Discretion of the Court:
  The court has the discretion to either award costs to the successful party, order partial costs, or decide that no costs should be awarded at all, depending on factors like the nature of the case, the conduct of the parties, or the reasonableness of the suit.

Rule 2: Costs in Cases of Default

• Non-Appearance or Default:
  If a party fails to appear or respond to the suit, the court can impose costs on the defaulting party. This could happen, for example, when a defendant fails to file a written statement or does not attend hearings without a valid reason.

• Costs Imposed on Defaulting Party:
  The court may order the party in default to pay the costs of the proceedings to the other party. This helps encourage the parties to comply with procedural rules and respect the court's time and process.

Rule 3: Fixed Costs in Certain Cases

• Determining Fixed Costs:
  In some cases, the court may order a fixed amount of costs instead of leaving it to discretion. For example, costs in cases where summary judgments are passed or in small claims cases may be fixed, ensuring a swift resolution without extensive litigation over costs.

• Schedule of Fixed Costs:
  The court may look at specific schedules or guidelines that set out the standard or fixed costs for certain types of actions or proceedings. These fixed amounts are typically lower than full legal costs.

Rule 4: Costs in Case of Settlement

• Settlement before Trial:
  If the parties arrive at a settlement before trial, the court may allow them to agree on the costs. In such cases, the agreement of the parties will be taken into consideration. However, if one party unreasonably delays settlement or causes the proceedings to drag on, the court can award costs to the other party.

• Costs after Settlement:
  In cases where a settlement is reached, the court may still decide on how the costs will be divided between the parties, particularly if one party was at fault in delaying or complicating the settlement.

Rule 5: Scale of Costs

• Different Scales of Costs:
  The CPC provides for various scales of costs depending on the nature of the case. For example, certain cases may have higher or lower costs based on factors like complexity, value of the claim, or the nature of the litigation.

• Attorney Fees:
  The costs also include the fees paid to attorneys, but the court has the discretion to limit the amount of attorney’s fees in cases where it considers the charges to be excessive.

Rule 6: Costs for Appellate Proceedings

• Costs in Appeal:
  When a case is appealed, the appellate court has the discretion to award costs to either party, depending on the outcome of the appeal. The costs can include the costs incurred in the appellate proceedings as well as the costs from the trial.

• Appeal Costs:
  The same principles apply in the appeal process—generally, the losing party is ordered to pay the costs of the winning party, but this can be adjusted depending on the specific circumstances of the appeal.

Rule 7: Special Provisions for Certain Cases

• Special Provisions for Specific Cases:
  The court may have specific rules for certain types of cases, such as family law matters, where costs are handled differently due to the nature of the case or the parties involved. This ensures that justice is achieved while taking into account the particular needs and sensitivities of different types of legal disputes.

Punishment

Failure to Pay Costs:
If a party fails to pay the ordered costs, the successful party can apply to the court for execution of the order for costs. This could result in the attachment of property or other measures to enforce the payment of costs.

Consequences of Unjustifiable Litigation:
If the court determines that a party has acted in bad faith or unnecessarily prolonged the case, it may impose additional costs or sanctions. The party responsible may be required to pay higher costs or face additional penalties.