Can a Suit be Withdrawn in Appeal, on the Ground that Appeal is Continuation of the Suit?

  • Yes; but, it is not an unqualified right.
  • There must be very strong reasons.

Jojy George Koduvath.

Decree’ Definition in CPC

Section 2(2) of the Code of Civil Procedure defines “decree” as under:

  • “2(2). “decree” means the formal expression of an adjudication which, so far as ragards the Court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. It shall be deemed to include the rejection of a plaint and the determination of any question within Section 144, but shall not include-
  • .(a) any adjudication from which an appeal lies as an appeal from an order, or
  • (b) any order of dismissal for default.
  • Explanation.- A decree is preliminary when further proceedings have to be taken before the suit can be completely disposed of. It is final when such adjudication completely disposes of the suit. It may be partly preliminary and partly final.”

Order 23 Rule 1 CPC

Order 23 Rule 1 CPC provides as under:-

  • “1. Withdrawal of suit or abandonment of part of claim:
  • (1) At any time after the institution of a suit, the plaintiff may as against all or any of the defendants abandon his suit or abandon a part of his claim: ….
  • (2) ……..
  • (3) Where the Court is satisfied,-
  • that a suit must fail by reason of some formal defect, or
  • that there are 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 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 the claim.
  • (4) …..
  • (5) Nothing in this rule shall be deemed to authorise the Court to permit one of several plaintiffs to abandon a suit or part of a claim under sub-rule (1), or to withdraw, under sub-rule (3), any suit or part of a claim, without the consent of the other plaintiffs.”

Restriction To Withdraw From The Suit At The Appellate Stage

There is restriction on the right to withdraw from the suit at the appellate stage. The plaintiff has no absolute right, at the appellate stage, to withdraw from the suit. An application made at the appellate stage to withdraw the suit cannot be allowed by the court if granting such permission would have the effect of depriving or destroying or nullifying or annulling any right which has come to be vested with the defendant under the decree. The court shall keep in mind the fact that, when permission is granted to withdraw from the suit with liberty to file a fresh suit, the parties are placed in the same position as they would have been, had the suit not been instituted at all. (Sabu Issac v. Antony Chacko, ILR 2020-4 Ker 725)

Rights under a decree cannot be taken away Unless Very Strong Reasons

In Sneh Gupta v. Devi Sarup (SB Sinha, J.), (2009) 6 SCC 194, referring Order 23 of the CPC it has been held that the parties are bound by the compromise. It is observed as as under:

  • “22. In view of the above discussion, it comes out that where a decree passed by the trial court is challenged in appeal, it would not be open to the plaintiff, at that stage, to withdraw the suit so as to destroy that decree. The rights which have come to be vested in the parties to the suit under the decree cannot be taken away by withdrawal of the suit at that stage unless very strong reasons are shown that the withdrawal would not affect or prejudice anybody’s vested rights.”

In Sneh Gupta v. Devi Sarup, the Apex Court relied on the earlier judgment, R. Rathinavel Chettiar v. V. Sivaraman, (1999) 4 SCC 89, where the case of the respondent was placed as under:

  • “As a desperate bid to save the lost battle, learned counsel for plaintiff-respondent No. 1 contended that since the appellants had obtained the sale-deed by fraud, which would not have the effect of conveying any title to them, they cannot, in the matter of withdrawal of suit, intervene nor can they be heard to oppose withdrawal.”

The Apex Court did not agree with the plaintiff; and held as under:

  • “We are not entering into the legality of the sale-deed as it is not the subject matter of the suit under appeal. Since appellants had already been impleaded as respondents in the appeal on the basis of that sale-deed, they have a right to be heard in the matter of withdrawal of suit.”

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