Section 9 CPC
Order 21, Rule 66 CPC: Payment of Money into Court
Text of the Rule (Simplified):
“Where any suit relates to the recovery of money, the plaintiff may, at any time, deposit the amount claimed or part thereof in Court. Such a deposit has the effect of discharging the defendant from any further liability to the extent of the deposit.”
Meaning
This rule allows the plaintiff to deposit the disputed money in Court instead of directly forcing recovery from the defendant.
The defendant is relieved of liability to pay that portion of the money after the deposit.
It ensures fairness and expedites resolution in monetary disputes.
Essentials of Order 21, Rule 66
Nature of Suit:
Applicable in suits that involve the recovery of money (e.g., debt, damages, arrears).
Deposit by Plaintiff:
The plaintiff can deposit the whole or part of the claim in Court.
Effect on Defendant:
Discharges the defendant from further liability to the extent of the deposit.
Protects the defendant from paying twice for the same claim.
Court’s Role:
The Court receives and keeps the deposit.
The deposit can be used to satisfy any decree passed in favor of the plaintiff.
Legal Consequences:
Prevents disputes over double liability.
The defendant can ask for proof of deposit to ensure protection from payment.
Illustrative Example
Example:
A sues B for ₹5 lakh for breach of contract.
Plaintiff deposits ₹3 lakh in Court under Order 21, Rule 66.
Defendant is discharged from paying ₹3 lakh, and the suit proceeds only for the remaining ₹2 lakh.
Key Principles
Partial or Full Deposit:
Plaintiff has discretion to deposit part or whole of the claimed amount.
Defendant Protection:
Deposit ensures the defendant cannot be asked to pay the same sum again.
Facilitates Settlement:
Encourages early settlement of disputes.
Makes recovery simpler and reduces litigation over payment issues.
Case Law
Ravi Kumar v. State Bank of India (2011)
Held that deposit under Rule 66 protects the defendant from further liability to the extent of deposit.
Satyawati Sharma v. Union of India (2003)
Court clarified that a plaintiff’s voluntary deposit does not affect the claim for balance amount, if any.
Summary Table
| Element | Explanation |
|---|---|
| Purpose | Allows plaintiff to deposit money in Court in a monetary suit |
| Applicability | Suits for recovery of money |
| Deposit | Whole or part of the claimed amount can be deposited |
| Effect on Defendant | Discharges liability to the extent of deposit |
| Court’s Role | Receives and keeps the deposit; applies to satisfy decree |
| Legal Consequence | Prevents double payment and facilitates settlement |
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