Order 23 of CPC
Order 23 CPC
Purpose of Order 23
Order 23 of the CPC deals with the procedure for withdrawal or compromise of suits, including dismissal of suits on compromise, and power of the court to stay or dismiss proceedings when compromise is reached between parties.
Scope of Order 23
Regulates how parties can withdraw their suit, either before or after trial.
Provides for the court’s power to dismiss a suit on the basis of compromise.
Controls the consequences of withdrawal and dismissal.
Applies when parties want to settle their dispute outside the court and dispose of the case amicably.
Key Provisions of Order 23
| Rule | Description |
|---|---|
| Rule 1 | Withdrawal of suit by plaintiff or appellant without permission of the court. |
| Rule 2 | Withdrawal of suit by plaintiff or appellant with permission of the court. |
| Rule 3 | Withdrawal of suit after evidence or after trial has commenced. |
| Rule 4 | Compromise between parties and its effect; court to record the compromise. |
| Rule 5 | Effect of withdrawal or compromise on subsequent proceedings or claims. |
| Rule 6 | Power of the court to dismiss the suit on compromise and to pass necessary orders regarding costs. |
Detailed Explanation of Important Rules
Rule 1 and Rule 2: Withdrawal of Suit
Without permission (Rule 1):
Plaintiff cannot withdraw a suit without the court’s permission after the defendant has appeared.
With permission (Rule 2):
Plaintiff may withdraw the suit with the court’s permission. The court may impose conditions including payment of costs.
Rule 3: Withdrawal after Evidence or Trial
Once the trial or evidence has begun, withdrawal is allowed only with the consent of the defendant and permission of the court.
This is to prevent abuse of process and protect the defendant from unnecessary expense or prejudice.
Rule 4: Compromise Between Parties
When parties settle their dispute amicably during the pendency of the suit, the court records the compromise.
The suit is then dismissed based on the compromise terms.
The court’s role is to ensure the compromise is genuine and lawful.
Rule 5: Effect of Withdrawal or Compromise
When a suit is withdrawn or dismissed on compromise, the plaintiff cannot file another suit on the same cause of action.
This rule prevents vexatious litigation.
Rule 6: Power of the Court
The court can order costs to be paid by either party.
The court may also pass any other order as necessary to give effect to the compromise or withdrawal.
Purpose and Policy Behind Order 23
To encourage amicable settlement of disputes.
To avoid unnecessary litigation and waste of court resources.
To ensure fair treatment of both parties during withdrawal or compromise.
To prevent misuse of process by withdrawal without consent or unfair advantage.
Relevant Case Law
1. K.K. Verma v. Union of India (1964) AIR SC 1238
Held that the court has the discretion to allow withdrawal of suit.
Withdrawal should not be allowed if it causes injustice to the defendant.
2. Union of India v. Dinesh Engineering Works (1969) AIR SC 1834
Held that after commencement of evidence, withdrawal requires consent of the opposite party.
Courts should be cautious to protect the interests of the defendant.
3. CIT v. T.T. Krishnamachari (1968) AIR SC 1164
Withdrawal or dismissal on compromise bars further litigation on the same subject.
Upholds finality of compromise.
4. Pundlik Shivram Jadhav v. Vasant Raghunath Patil (1972) AIR SC 1172
Discussed the effect of withdrawal on subsequent suits.
Reaffirmed that a suit withdrawn with permission operates as a bar to another suit on the same cause of action.
5. S.P. Chengalvaraya Naidu v. Jagannath (1994) 1 SCC 1
Emphasized that courts should ensure compromise is voluntary and genuine before recording it.
Courts have a duty to safeguard the interests of parties, especially in cases involving public interest or minors.
Practical Implications
Plaintiffs cannot withdraw or compromise suits at will once the case has progressed, especially after evidence starts.
Courts actively supervise the withdrawal/compromise to ensure fairness and justice.
The order protects defendants from being put to expense or prejudice due to capricious withdrawal.
Encourages settlements but balances it with procedural safeguards.
Summary Table
| Aspect | Explanation |
|---|---|
| Withdrawal without permission | Not allowed after defendant appears |
| Withdrawal with permission | Allowed, court may impose costs |
| Withdrawal after evidence begins | Allowed only with defendant’s consent and court’s permission |
| Compromise | Courts record compromise and dismiss suit |
| Effect of withdrawal/compromise | Bars further suits on the same cause of action |
| Court’s power | Can impose costs, ensure fairness |
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