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Here’s a more detailed yet clear explanation of Order 23 – Withdrawal and Compromise of
Suit under the Code of Civil Procedure (CPC), suitable for exam preparation or deep understanding:

⚖️Order 23 – Withdrawal and Compromise of Suit

Order 23 of the CPC deals with situations where the plaintiff wants to withdraw the suit, or the
parties reach a compromise. It ensures that while plaintiffs have the right to withdraw, they cannot
misuse it to harass defendants or abuse the judicial process.

🔹 PART I: WITHDRAWAL OF SUIT (Rules 1–2)

🔸 Who can withdraw the suit?

Only the plaintiff has the right to withdraw a suit or part of the claim, not the defendant or any third
party.

🔸 Two types of withdrawal:

1. Without the leave (permission) of the court – Rule 1(1)

2. With the leave of the court – Rule 1(3)

✅ A. Withdrawal Without Leave of the Court – Rule 1(1)

 The plaintiff may abandon the entire suit or part of it against all or any defendants at any
stage.

 This right is absolute and unconditional.

 The court cannot force the plaintiff to continue the case.

 However, if the plaintiff withdraws the suit without permission, they lose the right to file a
fresh suit on the same cause of action (Rule 1(4)).

📌 Consequences:

 No fresh suit on the same matter (barred).

 Plaintiff must bear costs as awarded by the court to the defendant.

🔍 Example:

If a plaintiff files a suit for recovery of ₹1,00,000 and withdraws it without court’s permission, they
cannot file a fresh suit for that amount again.

✅ B. Withdrawal With Leave of the Court – Rule 1(3)

 The plaintiff can request to withdraw the suit with liberty to file a fresh one.

 The court has discretion to allow it only if:

2. There are sufficient grounds for withdrawal.

🔸 What is a Formal Defect?

As explained by the Supreme Court in V. Rajendran v. Annasamy Pandian:

✅ Examples:

 Not giving mandatory notice under Sec. 80 CPC.

 Improper court fees.

 Filing in the wrong court.

 Misjoinder or non-joinder of parties.

 Incorrect property description.

 Lack of proper cause of action in the plaint.

These are curable or avoidable issues. The court allows withdrawal so that the plaintiff can correct
the defect and refile the suit properly.

🔸 What are Sufficient Grounds?

There has been disagreement among High Courts on the meaning of "sufficient grounds":

Madras High Court (C. Jagadeesan v. T. Baskaran)

 Interpreted "sufficient grounds" ejusdem generis (of the same kind) as "formal defect".

 Meaning: Only procedural or technical issues are accepted.

 Failure to prove the case is not a sufficient ground.

Orissa High Court (Trinath Basant Ray v. Sk. Mohamood)

 Took a liberal view.

 "Sufficient grounds" includes any valid reason, even if it affects the merits of the case (e.g.,
not enough evidence).

 Court can use discretion to allow withdrawal if justified.

🔸 Meaning of “Subject Matter” (Vallabh Das v. Madan Lal)

The Supreme Court held that subject matter includes:

1. Cause of action

2. Relief claimed
 3. The bundle of essential facts to be proved by the plaintiff

So, when we say withdrawal is allowed to file a new suit on the same subject matter, it means a suit
involving the same essential facts and relief.

🔸 Other Important Rules:

Rule 1(2): Minor Plaintiff

 If the plaintiff is a minor, the suit cannot be withdrawn without court’s permission, even if
it's being abandoned.

Rule 1(5): Multiple Plaintiffs

 If there are two or more plaintiffs, the suit or claim cannot be withdrawn unless all agree.

 However, each plaintiff can withdraw his own share or interest.

Rule 2: Limitation Period

 If a plaintiff withdraws a suit with permission to file afresh, the limitation period for the new
suit is not extended.

 The law of limitation applies as if the previous suit was never filed.

🔹 PART II: COMPROMISE OF SUIT (Rules 3–3B)

🔸 What is a Compromise?

When both parties agree to settle the dispute, the court can record this compromise and pass a
consent decree.

✅ Requirements for a Valid Compromise (Rule 3):

1. There must be a lawful agreement or compromise.

2. It must be in writing and signed by the parties.

3. It must be filed in the court.

4. The court must be satisfied that the agreement is voluntary and lawful.

🔍 Lawful Compromise:

 Must not be based on fraud, misrepresentation, or illegal terms.

 Only valid, legal agreements are enforceable.

🔸 Consent Decree:

 A decree passed based on compromise between the parties.

 Has the same effect as a regular decree.

 No fresh suit can be filed on the same matter.

 But the consent decree can be appealed if challenged on grounds like fraud or
misrepresentation.

🔚 Summary

Topic Key Points

Withdrawal Without Plaintiff can withdraw suit/claim without court's permission, but cannot file
Leave again on same cause of action.

Withdrawal With Court can allow withdrawal with permission to file fresh suit if there is a
Leave formal defect or sufficient grounds.

Minor / Multiple
Minor needs court's leave; all co-plaintiffs must consent to withdrawal.
Plaintiffs

If both parties settle, court can pass a consent decree based on written,
Compromise of Suit
signed, lawful agreement.

Let me know if you’d like visual aids like flowcharts, case law charts, or comparison tables to go with
this!