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1967 (5) TMI 79 - SC - Indian Laws

Issues:
- Right of a plaintiff to withdraw from a suit after framing of issues and recording of evidence.
- Interpretation of Order 23, Rule 1 of the Code of Civil Procedure regarding withdrawal of suits.
- Consideration of set-off or counterclaim in the context of withdrawal of a suit.
- Vested rights of the defendant in a suit for rendition of accounts.
- Comparison of principles in different court judgments regarding withdrawal of suits.

Detailed Analysis:

The Supreme Court judgment addressed the issue of whether the respondent was entitled to withdraw from the suit after framing of issues and recording of evidence. The Court examined Order 23, Rule 1 of the Code of Civil Procedure, which provides an unqualified right to a plaintiff to withdraw from a suit. The rule specifies that if no permission to file a fresh suit is sought, the plaintiff becomes liable for costs and is precluded from instituting a new suit on the same subject matter. The Court emphasized that there is no provision compelling the plaintiff to proceed with the suit once withdrawal is requested unless specific circumstances such as a set-off or counterclaim are involved.

In this case, the appellant contested the withdrawal, arguing that the respondent's action was an attempt to defeat the appellant's right to claim a decree if something was found due to them after accounting. The Court considered the absence of a preliminary decree for rendition of accounts and the nature of the claims made by the appellant in the written statement. It highlighted that the appellant, as the agent, did not claim rendition of accounts from the respondent, and no vested right had accrued in favor of the appellant at the time of withdrawal. The Court concluded that the plaintiff's right to withdraw the suit was not affected by any vested rights of the appellant, justifying the trial court's decision to allow the withdrawal.

Additionally, the judgment referenced a Madras High Court case to address exceptions to the general rule of suit dismissal upon withdrawal by the plaintiff. The Madras High Court's opinion highlighted scenarios such as partition suits or suits for accounts where defendants may be entitled to relief as a result of settlement of accounts. However, the Supreme Court clarified that such entitlement to relief for the defendant could only arise after a preliminary decree for rendition of accounts is passed, emphasizing that a defendant in a suit for rendition of accounts cannot compel the plaintiff to continue the suit at the stage of withdrawal.

The Supreme Court dismissed the appeal, affirming the trial court's decision to allow the withdrawal of the suit by the respondent, with costs awarded to the respondent. The judgment provided a detailed analysis of the legal principles governing the withdrawal of suits, the rights of plaintiffs and defendants in such situations, and the considerations for exceptions to the general rule based on previous court judgments.

 

 

 

 

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