Conditional order
Full Text
(1) Where it appears to the Court that it is possible that a claim or defence may succeed but it is improbable that it shall do so, the Court may make a conditional order as set forth in Rule 6 (1) (b).
(2) Where the Court makes a conditional order, it may:—
(a) make it subject to all or any of the following conditions:—
(i) require a party to deposit a sum of money in the Court;
(ii) require a party to take a specified step in relation to the claim or defence, as the case may be;
(iii) require a party, as the case may be, to give such security or provide such surety for restitution of costs as the Court deems fit and proper;
(iv) impose such other conditions, including providing security for restitution of losses that any party is likely to suffer during the pendency of the suit, as the Court may deem fit in its discretion; and
(b) specify the consequences of the failure to comply with the conditional order, including passing a judgment against the party that have not complied with the conditional order.
Plain English Summary
Empowers the Commercial Court to pass a conditional order where a claim or defense is technically possible but highly 'improbable' of succeeding, requiring cash deposit or security into court, and specifying immediate judgment upon default.
Key Legal Elements
- The 'Possible but Improbable' Threshold: Mirrors English CPR Part 24 Practice Direction 24.5.
- Menu of Conditions: Cash deposit of suit amount into court, bank guarantee, security for costs, or security for potential business losses.
- Automatic Sanction on Non-Compliance (Sub-rule 2(b)): Failure to deposit the ordered sum leads to immediate judgment and decree against the defaulting party.
Practical Note
Strategic Use of Conditional Orders: 1. Weeding Out Frivolous Defenses: If the defendant sets up an improbable defense (e.g. alleging oral cancellation of a registered agreement without any supporting email), argue under Rule 7 that even if not impossible, it is highly 'improbable'. Pray that the defendant be directed to deposit 100% of the claim amount in court within 30 days, failing which summary decree be entered under Rule 7(2)(b). 2. Enforcement: If defendant defaults in making the cash deposit, move immediately for decree without further argument.
हिंदी पाठ
(1) जहां न्यायालय को यह प्रतीत होता है कि यह संभव है कि कोई दावा या प्रतिरक्षा सफल हो जाए किंतु ऐसा होना असंभाव्य (Improbable) है, वहां न्यायालय नियम 6(1)(ख) में विनिर्दिष्ट सशर्त आदेश (Conditional Order) कर सकेगा।
(2) जहां न्यायालय सशर्त आदेश करता है, वहां वह:—
(क) उसे निम्नलिखित में से किन्हीं शर्तों के अधीन कर सकेगा:—
(i) पक्षकार को न्यायालय में धनराशि जमा (Deposit money) करने की अपेक्षा करना;
(ii) दावे या प्रतिरक्षा के संबंध में कोई विनिर्दिष्ट कदम उठाने की अपेक्षा करना;
(iii) खर्चों के प्रत्यास्थापन हेतु प्रतिभूति (Security) या जमानतदार देने की अपेक्षा करना;
(iv) वाद के लंबित रहने के दौरान होने वाली संभावित हानियों की प्रतिपूर्ति हेतु सुरक्षा सहित अन्य शर्तें अधिरोपित करना; तथा
(ख) सशर्त आदेश का अनुपालन न करने के परिणामों को विनिर्दिष्ट करना, जिसमें अनुपालन न करने वाले पक्षकार के विरुद्ध सीधे निर्णय पारित करना (Passing judgment against defaulting party) शामिल है।