Bombay High Court Dismisses Writ Petition Challenging Withdrawal of Suit Without Liberty. Plaintiff's Right to Withdraw Suit Under Order XXIII Rule 1 CPC is Absolute When No Liberty to File Fresh Suit is Sought.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The petitioner, M/s Butibori CEPT Pvt. Ltd., filed a writ petition challenging the order of the trial court dated 25.01.2021 in Special Civil Suit No.487/2019. The respondent No.1, M/s Indo Rama Synthetics (I) Ltd., had filed the suit for declaration, injunction, and recovery of money against the petitioner and other defendants. The suit was pending since April 2019. On 25.01.2021, the suit was fixed for hearing on the injunction application. On that day, the petitioner (defendant No.2) filed an application for adjournment (Exhibit-54), which was rejected by the trial court. Thereafter, the plaintiff (respondent No.1) sought to withdraw the suit. The trial court allowed the withdrawal and dismissed the suit as withdrawn. The petitioner challenged this order, contending that the suit should have been dismissed with costs or on merits, and that the trial court erred in rejecting the adjournment application. The High Court examined the record and found that the plaintiff had not sought liberty to file a fresh suit. The court held that under Order XXIII Rule 1 CPC, a plaintiff is entitled to withdraw the suit at any time without liberty, and the court has no discretion to refuse such withdrawal. Since no liberty was sought, the suit was simply dismissed as withdrawn, and no prejudice was caused to the defendants. The High Court also upheld the rejection of the adjournment application, noting that the trial court had exercised its discretion properly given the pendency of the suit since 2019. The writ petition was dismissed.

Headnote

A) Civil Procedure - Withdrawal of Suit - Order XXIII Rule 1 CPC - Withdrawal Without Liberty - The plaintiff sought to withdraw the suit without seeking liberty to file a fresh suit. The trial court allowed the withdrawal and dismissed the suit. The petitioner (defendant) challenged the order, arguing that the suit should have been dismissed with costs or on merits. The High Court held that since no liberty was sought or granted, the withdrawal was valid and no prejudice was caused to the defendants. (Paras 6-10)

B) Civil Procedure - Adjournment - Discretion of Court - The trial court rejected the petitioner's application for adjournment on the ground that the suit was pending since 2019 and the application was filed belatedly. The High Court upheld the rejection, noting that the trial court's discretion was properly exercised. (Paras 5-6)

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Issue of Consideration

Whether the trial court erred in dismissing the suit as withdrawn without granting liberty to file a fresh suit, and whether the petitioner's application for adjournment was wrongly rejected.

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Final Decision

The High Court dismissed the writ petition, upholding the trial court's order allowing withdrawal of suit and rejecting the adjournment application.

Law Points

  • Withdrawal of suit without liberty to file fresh suit
  • Order XXIII Rule 1 CPC
  • No liberty to file fresh suit
  • Application for withdrawal
  • No liberty granted
  • Suit dismissed as withdrawn
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Case Details

2021 LawText (BOM) (02) 104

Writ Petition No.536 of 2021

2021-02-04

V.M. Deshpande, J.

Shri A.M. Ghare for petitioner, Shri Nitin Lalwani for respondent No.1, Shri Ranjeet Singh Gehlot h/f Shri A.C. Jaltare for respondent No.2, Shri R.M. Bhangde for respondent No.3

M/s Butibori CEPT Pvt. Ltd.

M/s Indo Rama Synthetics (I) Ltd., Maharashtra Industrial Development Corporation, Butibori Manufacturers Association

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Nature of Litigation

Civil writ petition challenging order allowing withdrawal of suit without liberty to file fresh suit.

Remedy Sought

Petitioner sought to quash the order dated 25.01.2021 allowing withdrawal of suit and to direct trial court to decide the suit on merits.

Filing Reason

Petitioner contended that the trial court erred in allowing withdrawal of suit without granting liberty to file fresh suit and in rejecting adjournment application.

Previous Decisions

Trial court rejected adjournment application and allowed withdrawal of suit on 25.01.2021.

Issues

Whether the trial court erred in allowing withdrawal of suit without liberty to file fresh suit? Whether the trial court erred in rejecting the petitioner's application for adjournment?

Submissions/Arguments

Petitioner argued that the suit should have been dismissed with costs or on merits, and that the trial court wrongly rejected the adjournment application. Respondent No.1 submitted that it did not seek liberty to file fresh suit and the withdrawal was valid.

Ratio Decidendi

Under Order XXIII Rule 1 CPC, a plaintiff has an absolute right to withdraw the suit without liberty to file a fresh suit, and the court has no discretion to refuse such withdrawal. The trial court's rejection of adjournment was a proper exercise of discretion.

Judgment Excerpts

The plaintiff is entitled to withdraw the suit without liberty to file a fresh suit. No liberty was sought, therefore the suit was dismissed as withdrawn.

Procedural History

Respondent No.1 filed Special Civil Suit No.487/2019 for declaration, injunction, and recovery of money. The suit was pending since April 2019. On 25.01.2021, the trial court rejected the petitioner's adjournment application and allowed the plaintiff to withdraw the suit. The petitioner filed the present writ petition challenging that order.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order XXIII Rule 1, Order XXXIX Rules 1 and 2
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High Court Bombay High Court Dismisses Writ Petition Challenging Withdrawal of Suit Without Liberty. Plaintiff's Right to Withdraw Suit Under Order XXIII Rule 1 CPC is Absolute When No Liberty to File Fresh Suit is Sought.
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