CALCUTTA HIGH COURT
Kharda Co. Ld. - Appellant
Versus
Durga Charan Chandra - Respondent
Decided On : 26-08-1909
Withdrawal of Suit - Civil Procedure - Order 23, Rule 1, Clause 2 - [Order 23, Rule 1, Clause 2] - The court held that the power to allow a plaintiff to withdraw from a suit with liberty to institute a fresh suit under Order 23, Rule 1, Clause 2 of the Code of Civil Procedure is limited to cases where the suit must fail due to a formal defect or other analogous reasons. The court emphasized that the ground for withdrawal must be of the same nature as the formal defect mentioned in Clause (a) of the rule. The court also considered the precedent set by Watson and Co. v. The Collector of Zillah Rajshahye, which ruled that such permission cannot be granted after issues have been joined and the plaintiff has failed to produce evidence. The court further clarified that the decision in Musammat Khatoon Koonwar v. Hurdoot Narian Singh, where a court of appeal allowed withdrawal due to the plaintiff's inability to produce evidence, was not applicable in this case as no objection was raised by the defendant. The court concluded that allowing withdrawal after evidence has been adduced poses a risk of perjury and should be avoided.
Fact of the Case:
The plaintiff sued the defendants for recovery of money. After evidence was adduced on both sides, the plaintiff applied for leave to withdraw from the suit with liberty to bring a fresh suit on the same cause of action. The court granted the plaintiff's request, allowing withdrawal with permission to bring a fresh suit.
Finding of the Court:
The court found that the order allowing the plaintiff to withdraw from the suit was irregular and should be discharged. The court reasoned that the plaintiff's application for withdrawal was made after evidence had been adduced, which posed a risk of perjury if the plaintiff were allowed to bring a fresh suit. The court also relied on the precedent set by Watson and Co. v. The Collector of Zillah Rajshahye, which held that such permission cannot be granted after issues have been joined and the plaintiff has failed to produce evidence.
Issues: The issue before the court was whether the lower court was justified in granting the plaintiff permission to withdraw from the suit with liberty to bring a fresh suit after evidence had been adduced.
Ratio Decidendi: The court held that the power to allow a plaintiff to withdraw from a suit with liberty to institute a fresh suit under Order 23, Rule 1, Clause 2 of the Code of Civil Procedure is limited to cases where the suit must fail due to a formal defect or other analogous reasons. The court emphasized that the ground for withdrawal must be of the same nature as the formal defect mentioned in Clause (a) of the rule. The court also considered the precedent set by Watson and Co. v. The Collector of Zillah Rajshahye, which ruled that such permission cannot be granted after issues have been joined and the plaintiff has failed to produce evidence.
Final Decision: The court made the rule absolute, discharged the order of the lower court, and sent the case back to the lower court to be taken up at the stage where the discharged order was made.
JUDGMENT
1. We are invited in this Rule to set aside an order made by the Court below under Order 23, Rule 1, Clause 2, of the Code of Civil Procedure. The plaintiff sued the defendants for recovery of money. The parties went to trial. Evidence was adduced on both sides and the argument on the side of the defendants was finished. At that stage the plaintiff applied for leave to withdraw from the suit with liberty to bring a fresh suit on the same cause of action. The Court thereupon recorded the following order: "I have gone through the evidence. It is a case in which permission to bring afresh suit should be given. It is accordingly ordered that the plaintiff be allowed to withdraw from the suit with permission to bring a fresh suit unless barred. The plaintiff do pay the costs of the defendant in this Court." The legality of this order is now called in question.
2. Rule 1, Sub-rule (2) of Order 23 provides that where the Court is satisfied, (a) that a suit must fail by reason of some formal defect, or (b) that there are other sufficient grounds for allowing the plaintiff to institute a fresh suit for the subject-matter of a suit or part of a claim, it may, on such terms as it thinks fit, grant the plaintiff permission to withdraw from such suit or abandon such part of the claim with liberty to institute a fresh suit in respect of the subject-matter of such suit or such part of a claim. It is manifest that Clauses (a) and (b) of Sub-rule 2 have to be read together; but it is suggested by the learned Vakil for the plaintiff that the terms of Clause (b) are wide enough to entitle the Court to allow the plaintiff to withdraw from the suit under any circumstances that may be deemed sufficient by the Court. We are not prepared to accept this as the true interpretation of the clause. Clause (a) specifies that a suit may be allowed to be withdrawn if the Court is satisfied that it must fail by reason of some formal defect. Clause (b) then proceeds to lay down that a similar order may be made for any other sufficient ground. The intention plainly is that a ground included in Clause (b) must be of the same nature as the ground specified in Clause (a). Reference may in this connection be made to the decision of the Judicial Committee in the case of Watson and Co. v. The Collector of Zillah Rajshahye 13 M.I.A. 160 : 12 W.R. 43 : 3 B.L.R. 48, where it was ruled that the Court has no power to grant permission to the plaintiff to withdraw from the suit with liberty to institute a fresh suit in a case where issues have been joined and the plaintiff has failed to, produce evidence in support of the issues. This decision was rested on the ground that the Court could make an order of this description only where the suit failed by reason of some formal defect or any analogous reason. We observe that though case was decided under the law as it stood before the CPC of 1859, it was treated as applicable to the law under the Code of 1882, in the recent case of Ramdeo v. Goneshnarain 12 C.W.N. 921 : 35 C. 924. The learned Vakil for the plaintiff, however, relied upon the decision of this Court in the case of Musammat Khatoon Koonwar v. Hurdoot Narian Singh 20 W.R. 163, to show that even a Court of appeal is competent to allow a suit to be withdrawn on the ground that the plaintiff by reason of some mistake or other cause, has not been able to produce the whole evidence in support of his claim. But it is clear from the judgment in that case that no objection was taken by the defendant to the order, of withdrawal which the Court proposed to make. The case of Poresh Narain v. Surut Soonduree Debee 16 W.R. 100 does not show that the Court would refuse to interfere with an order for withdrawal, improperly made by the Court of first instance; in that particular case, the order of withdrawal had been made before issues were framed and evidence adduced and might consequently be defended. In the case before us, however, as already stated, the whole of the evid
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