Order XXIV Rule 1 CPC - Deposit by Defendant of Amount in Satisfaction of Claim

Order 24 Rule 1 of the Code of Civil Procedure, 1908 allows a defendant in a suit to recover a debt or damages to deposit money in court that the defendant considers sufficient to satisfy the claim in full.

Text of Order XXIV Rule 1 CPC

Meaning and Scope of Rule 1

Order XXIV deals with payment into court. Rule 1 permits a defendant to deposit an amount in court in a suit for recovery of a debt or damages. The rule expressly allows such a deposit at any stage of the suit.

A debt is a sum legally owed by one person to another. Damages generally means monetary compensation claimed for a legally actionable loss or injury. A deposit under this rule reflects the defendant's assessment of the amount that would satisfy the claim in full; it does not by itself establish that the plaintiff has accepted that amount or that the court has decided the dispute.

Essential Conditions

• The proceeding must be a suit to recover a debt or damages.
• The deposit is made by the defendant in court.
• The defendant may make the deposit at any stage of the suit.
• The amount is what the defendant considers satisfaction in full of the claim.

What Happens After the Deposit?

Rule 1 provides for the deposit itself. The related provisions explain the next steps:

Order XXIV Rule 2 - Notice of Deposit

Notice of the deposit is to be given to the plaintiff through the court. The plaintiff may apply to withdraw the deposited amount.

Order XXIV Rule 3 - Interest After Notice

Rule 3 governs interest on the amount deposited after the plaintiff receives notice of the deposit. Its application depends on the amount deposited and the statutory conditions.

Order XXIV Rule 4 - Acceptance of Deposit

Rule 4 addresses the consequences when the plaintiff accepts the deposited sum as satisfaction in part or in full, including the procedure for any balance claimed and relevant costs.

Practical Illustration

If a plaintiff sues to recover Rs. 1,00,000 as a debt and the defendant considers Rs. 70,000 sufficient to satisfy the claim, the defendant may deposit Rs. 70,000 in court under Rule 1. Whether that sum finally settles the claim depends on the plaintiff's response and the applicable procedural rules; the deposit alone does not automatically dispose of the suit.

Official Legal Reference

For the current statutory text, consult the India Code official legislation portal and locate the Code of Civil Procedure, 1908 (Act 5 of 1908), First Schedule, Order XXIV. Also consult any applicable High Court amendments and procedural rules.

Note: This article explains the general central provision. Court practice and applicable amendments should be checked for the jurisdiction and facts of a particular case.