Provisions for payment in court under Order XXIV of the CPC
Provisions for payment in court under Order XXIV of the CPC
Provisions for payment in court under Order XXIV of the Code of Civil Procedure, 1908:
Order XXIV of the Code of Civil Procedure, 1908 (CPC), deals with payment into court. It provides for the following situations:
- Payment by defendant of amount in satisfaction of claim (Rule 1):The defendant in any suit to recover a debt or damage may, at any stage of the suit, deposit in Court such sum of money as he considers a satisfaction in full of the claim.
- Notice of deposit (Rule 2):Notice of the deposit shall be given through the Court by the defendant to the plaintiff, and the amount of the deposit shall be recorded in the proceedings.
- Acceptance of deposit by plaintiff (Rule 3): If the plaintiff accepts the deposit within the time allowed by the Court, the suit shall be dismissed.
- Non-acceptance of deposit by plaintiff (Rule 4): If the plaintiff does not accept the deposit within the time allowed by the Court, the suit shall proceed, and the deposit shall remain in Court to abide the result of the suit.
- Payment out of court (Rule 5): If the suit is dismissed, the deposit shall be paid out to the defendant.
- Application of deposit towards satisfaction of decree (Rule 6): If the plaintiff is successful in the suit, the deposit shall be applied towards the satisfaction of the decree, and the balance, if any, shall be paid to the plaintiff.
Illustrations:
- A defendant deposits Rs. 10,000 in court in satisfaction of the plaintiff’s claim of Rs. 15,000. The plaintiff does not accept the deposit. The suit proceeds and the plaintiff is successful. The court will apply the Rs. 10,000 deposit towards the satisfaction of the decree and direct the defendant to pay the balance of Rs. 5,000 to the plaintiff.
- A defendant deposits Rs. 5,000 in court in satisfaction of the plaintiff’s claim of Rs. 10,000. The plaintiff accepts the deposit. The court will dismiss the suit.
Examples:
- In the case of Ram Kishan v. Ram Autar (1973), the Supreme Court of India held that the provisions of Order XXIV of the CPC are intended to facilitate the settlement of disputes between parties and to avoid prolonged litigation.
- In the case of State Bank of India v. M/s. D.V. Associates (2005), the Supreme Court of India held that the court has the power to order the defendant to deposit the entire amount of the claim in court if the defendant is unable to give security for the costs of the suit and if the court is of the opinion that the defendant is likely to leave the country or to dispose of his assets in order to evade payment of the decree.
The provisions for payment in court under Order XXIV of the CPC are important because they help to ensure that disputes are resolved fairly and that the parties involved are able to recover the money that is owed to them.
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304
