Case Note & Summary
The dispute arose from a civil suit for damages filed by the appellant against his former employer, National Thermal Power Corporation Ltd. (NTPC), and its General Manager. The appellant sought damages but faced repeated adjournments due to his counsel's unavailability. The trial court, after several adjournments and a failure to pay costs imposed for delays, dismissed the suit under Section 35B of the Code of Civil Procedure (CPC). The High Court upheld this dismissal, leading to the present appeal. The appellant contended that Section 35B does not empower the court to dismiss the suit for non-payment of costs, arguing that it only allows for the cessation of prosecution. The Supreme Court analyzed Section 35B, concluding that while non-payment of costs results in forfeiture of the right to participate further in the suit, it does not mandate dismissal. The court emphasized that the legislature did not intend for dismissal to be an automatic consequence of non-payment. Instead, the court should close the cross-examination and allow the defendants to present their case. The Supreme Court allowed the appeal, set aside the lower court's judgments, and restored the suit, barring the plaintiff from further prosecution unless costs were paid. The court directed that the defendants could present further evidence and arguments, and if the plaintiff applied for an extension to pay costs, the trial court could consider it under Section 148 CPC, but this would not restore his right to cross-examine the witness.
Headnote
A) Civil Procedure - Dismissal of Suit - Non-Payment of Costs - Code of Civil Procedure, 1908, Section 35B - The court held that non-payment of costs does not automatically lead to dismissal of the suit but forfeits the right to further prosecute the suit. The court clarified that the appropriate course is to close the cross-examination of the witness and prohibit further prosecution by the defaulting party (Paras 5-9).
Issue of Consideration
Whether a suit can be dismissed for non-payment of costs under Section 35B of the Code of Civil Procedure, 1908.
Final Decision
The Supreme Court allowed the appeal, set aside the judgments of the High Court and trial court, restored the suit, and barred the plaintiff from further prosecution unless costs were paid.
Law Points
- Civil Procedure
- Costs
- Adjournments
- Dismissal of Suit
- Section 35B CPC
- Section 148 CPC
