Bailabel Type : bailable

Description

Order 23 of the Civil Procedure Code (CPC) governs the withdrawal and adjustment of suits, providing the rules under which a plaintiff or defendant can either withdraw their suit or settle the case without going to trial. This order is crucial as it allows parties to discontinue a case or reach an out-of-court settlement, providing flexibility and encouraging settlement without the need for prolonged litigation.

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Key Provisions of Order 23

Rule 1: Withdrawal of Suit

1. Plaintiff’s Right to Withdraw:

   • A plaintiff can withdraw their suit at any stage of the proceedings before the final judgment is passed. This is done by filing a formal application to the court.
   • Plaintiff’s Right to Dismiss:
     The plaintiff can also seek to dismiss the suit with or without prejudice. "With prejudice" means that the plaintiff cannot file the same suit again. "Without prejudice" means that the plaintiff can file the same suit again at a later time.

2. Conditions for Withdrawal:

   • The withdrawal of the suit can be made without prejudice to the right of the plaintiff to file a fresh suit. However, this is subject to the permission of the court. If the court grants permission, the plaintiff is free to withdraw the suit and file another one on the same cause of action.
   • If the suit is withdrawn with prejudice, the plaintiff cannot initiate another suit based on the same cause.

3. Court’s Permission:

   • In certain cases, the court’s permission is required for the withdrawal. If the defendant has already filed a counterclaim or there are other connected matters, the plaintiff may not be allowed to withdraw without the defendant’s consent or the court’s approval.
   • Costs: The court may impose costs on the plaintiff if the withdrawal is made, especially when it inconveniences the defendant. These costs can be ordered by the court to compensate the defendant for the time and resources spent on the suit.

Rule 2: Withdrawal of Part of the Suit

• In some cases, a plaintiff may withdraw only part of the suit, leaving the other parts to be litigated. This is allowed if the court is satisfied that the withdrawal of part of the suit will not cause harm to the defendant’s rights.

Rule 3: Adjustment of Suit (Settlement)

1. Compromise or Settlement:
   The parties to the suit can also apply to the court for an adjustment (or settlement) of the suit by compromise. If the parties reach a settlement or agree on a compromise, the court may decree the settlement and dispose of the case accordingly.

   • Compromise or Settlement: When a settlement is reached, the case can be disposed of based on that agreement, without the need for trial.

2. Effect of Settlement:
   Once a settlement has been reached, it is binding on the parties, and the court may pass a decree in terms of the settlement. This decree is enforceable just like any other judgment or decree passed by the court.

3. Recorded Agreement:
   If the parties reach a compromise, the court will record the terms of the agreement and pass a decree based on the compromise. This decree is legally binding and enforceable.

Rule 4: Consequences of Withdrawal Without Permission

• If the plaintiff withdraws the suit without the court’s permission, it may be considered abandoned. The plaintiff will not be allowed to file the same suit again based on the same cause of action. This is considered dismissal with prejudice.
• In such a case, the defendant may be entitled to claim costs for the inconvenience caused by the withdrawal.

Punishment

1. Dismissal of Suit with Prejudice:
   If the plaintiff withdraws the suit without permission or fails to meet the conditions of withdrawal, the case may be dismissed with prejudice, meaning that the plaintiff cannot refile the case on the same grounds.

2. Liability for Costs:
   If the withdrawal causes inconvenience to the defendant, the court may order the plaintiff to pay the defendant’s costs, including any legal fees or expenses incurred due to the withdrawal. Similarly, in cases of compromise, costs may be allocated between the parties.

3. Loss of Right to File a Fresh Suit:
   If the suit is withdrawn with prejudice, the plaintiff may lose the right to bring another suit based on the same cause of action, and the matter will be considered legally closed.