Bombay High Court Allows Withdrawal of Suit Without Notice to Intervenors, Sets Aside Order for Costs. The court held that intervenors added as defendants have a right to be heard before withdrawal of suit under Order XXIII Rule 1 CPC, and remanded the matter for fresh hearing.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The case involves a civil suit filed by respondent No.1 (original plaintiff) before the City Civil Court, being Long Cause Suit No.2830 of 2002, against 14 defendants. During the pendency of the suit, the petitioners (Girnar Apartments Co-operative Housing Society Ltd.) filed an application for intervention, which was allowed, and they were added as defendants. The plaintiff was directed to amend the plaint but did not do so. Interim orders were passed in favor of the plaintiff. Subsequently, the plaintiff filed an application for withdrawal of the suit on 05/01/2005 before the Vacation Judge. The matter was adjourned to 08/02/2005, but the presiding officer was on leave, so it was adjourned to 07/03/2005. On that date, the plaintiff and her advocate were absent, but advocates for various defendants, including the petitioners, were present. The trial court allowed the withdrawal of the suit and imposed costs of Rs. 25,000 on the plaintiff for alleged abuse of process. The petitioners challenged this order, arguing that they were not heard before the withdrawal was permitted. The High Court held that the trial court erred in allowing withdrawal without hearing the intervenors who had been added as parties. The court set aside the order permitting withdrawal and the order of costs, and remanded the matter to the trial court for fresh consideration after hearing all parties. The court noted that the plaintiff had a right to withdraw the suit, but the intervenors had a right to be heard before the suit was withdrawn.

Headnote

A) Civil Procedure - Withdrawal of Suit - Order XXIII Rule 1 CPC - Right of Intervenor to be Heard - The trial court allowed withdrawal of suit without hearing the intervenors who had been added as defendants, which was held to be improper as they had a right to be heard before the suit was withdrawn. The court set aside the order permitting withdrawal and remanded the matter for fresh consideration after hearing all parties. (Paras 1-5)

B) Civil Procedure - Costs - Abuse of Process - Order XXIII Rule 1 CPC - The trial court imposed costs of Rs. 25,000 on the plaintiff for alleged abuse of process, but the High Court found that the plaintiff had a right to withdraw the suit and the imposition of costs was not justified without proper hearing. The order of costs was set aside. (Paras 4-5)

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Issue of Consideration

Whether the trial court could permit withdrawal of a suit without hearing the intervenors who had been added as parties, and whether the imposition of costs was proper.

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Final Decision

The High Court allowed the civil revision application, set aside the trial court's order dated 07/03/2005 permitting withdrawal of the suit and imposing costs, and remanded the matter to the trial court for fresh consideration after hearing all parties.

Law Points

  • Withdrawal of suit
  • Order XXIII Rule 1 CPC
  • Right of intervenor to be heard
  • Costs for abuse of process
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Case Details

2005 LawText (BOM) (05) 261

Civil Revision Application No.49 of 2005 in Suit No.2830 of 2002

2005-05-03

D.G. Deshpande

2005:BHC-AS:8695

Mr. Rajiv Kumar i/by Sanjay Udeshi & Co. for petitioners; Mr. Nitin Thakker with Mr. D.H. Mehta with Mr. Siddhiki, Mr. Khan, Mr. Chirag Balsara and Mr. Aftab Diamondwala i/by Divya Shah and Associates for Respondent Nos. 8 to 15; Mr. A.J. Bhor for Respondent Nos. 2, 3 and 4.

Girnar Apartments Co-operative Housing Society Ltd.

Mrs. Sonia Sood, The Bombay Municipal Corporation & ors.

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Nature of Litigation

Civil revision against order permitting withdrawal of suit and imposing costs.

Remedy Sought

Petitioners sought setting aside of the trial court's order allowing withdrawal of suit and imposing costs.

Filing Reason

The trial court allowed withdrawal of suit without hearing the petitioners who had been added as intervenor-defendants.

Previous Decisions

The trial court allowed the plaintiff to withdraw the suit and imposed costs of Rs. 25,000 on the plaintiff.

Issues

Whether the trial court could permit withdrawal of suit without hearing the intervenors who had been added as parties. Whether the imposition of costs on the plaintiff was justified.

Submissions/Arguments

Petitioners argued that they were not heard before the withdrawal was permitted, and they had a right to be heard as added defendants. Respondents argued that the plaintiff had a right to withdraw the suit and the court had discretion to impose costs.

Ratio Decidendi

An intervenor who has been added as a party to a suit has a right to be heard before the suit is withdrawn. The trial court must hear all parties before permitting withdrawal under Order XXIII Rule 1 CPC.

Judgment Excerpts

The trial court allowed withdrawal of suit without hearing the intervenors who had been added as defendants, which was held to be improper as they had a right to be heard before the suit was withdrawn. The court set aside the order permitting withdrawal and the order of costs, and remanded the matter for fresh consideration after hearing all parties.

Procedural History

Plaintiff filed suit in 2002. Petitioners intervened and were added as defendants. Plaintiff applied for withdrawal on 05/01/2005. On 07/03/2005, trial court allowed withdrawal and imposed costs. Petitioners filed Civil Revision Application No.49 of 2005 challenging that order.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order XXIII Rule 1
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