LI Network
Published on: October 14, 2023 at 10:49 IST
The Karnataka High Court delivered a significant ruling related to Order 38 of the Civil Procedure Code (CPC).
In this ruling, the court clarified that the failure to deposit the security amount would not lead to the forfeiture of the right to file a written statement under Order XXXVIII of the CPC.
This judgment came in response to a Writ Petition challenging a decision by the Trial Court, which had rejected an application seeking permission to file a written statement under Section 151 of the CPC.
Justice S.G. Pandit, while making this determination, emphasized that Order XXXVIII of the CPC does not prohibit the filing of a written statement, and the court cannot deny the filing of a written statement on these grounds.
The consequences of not depositing the security amount, as ordered, are distinct from the right to file a written statement and do not result in the forfeiture of this right.
The court also highlighted its authority to issue a warrant for the arrest of the defendant under Order XXXVIII Rule 1 of the CPC if it believes that the defendant intends to delay the plaintiff, avoid court proceedings, or obstruct or delay the execution of any decree that may be passed against them.
In the event of an arrest, the defendant is required to appear before the court to demonstrate why they should not furnish security for their appearance.
Moreover, the court pointed out that under Sub-rule (2) of Order XXXVIII of the CPC, if the defendant fails to show cause, the court is empowered to order them to either deposit money or other property sufficient to answer the claim against them or to furnish security for their appearance during the pendency of the suit.
However, if the defendant does show cause, the court must consider the cause shown and make orders in accordance with sub-rules (5) or (6) of Order XXXVIII of the CPC.
The Karnataka High Court clarified that the failure to deposit the security amount does not result in the forfeiture of the right to file a written statement, as Order XXXVIII of the CPC does not prohibit the filing of a written statement.
