Order XXIV Rule 2 CPC - Notice of Deposit
Order 24 Rule 2 of the Code of Civil Procedure, 1908 governs how a defendant gives notice of money deposited in court and how the plaintiff may obtain payment of that amount.
Text of Order XXIV Rule 2 - Notice of Deposit
Notice of the deposit shall be given through the Court by the defendant to the plaintiff, and the amount of the deposit shall (unless the Court otherwise directs) be paid to the plaintiff on his application.
Source: Code of Civil Procedure, 1908 - India Code (official government text, Order XXIV).
Meaning and Scope of Rule 2
Notice of deposit means formal communication, through the court, that the defendant has deposited money in connection with the plaintiff's claim. Under Rule 2, the defendant must give that notice to the plaintiff through the court; simply depositing money is not a substitute for the required notice.
Payment to the plaintiff: the plaintiff may apply to the court to receive the deposited amount. The general rule is that it is to be paid on the plaintiff's application, unless the court directs otherwise. Rule 2 does not make payment automatic without an application.
Practical Procedure
- Deposit: in a suit to recover debt or damages, the defendant may deposit an amount under Order XXIV Rule 1.
- Notice: the defendant gives notice of the deposit to the plaintiff through the court under Rule 2.
- Application: the plaintiff may apply to the court for release of the deposited money.
- Court direction: the court considers the application and any applicable directions before disbursement.
- Acceptance: whether the plaintiff accepts the amount as full or partial satisfaction is relevant under Rule 4.
Related Provisions of Order XXIV
Rule 1 - Deposit by Defendant
In a suit for recovery of a debt or damages, the defendant may deposit in court, at any stage, the sum considered by the defendant to satisfy the claim in full. Read Order XXIV Rule 1.
Rule 3 - Interest Following Notice
Rule 3 provides that interest is not allowed to the plaintiff on the sum deposited from the date the plaintiff receives notice, whether the deposit equals or falls short of the claim. The rule concerns interest on the deposited sum, not necessarily the whole amount claimed. Read Order XXIV Rule 3.
Rule 4 - Full or Partial Satisfaction
If the plaintiff accepts the deposit only as partial satisfaction, the suit may continue for the balance, subject to the rule's provisions on costs. If accepted as full satisfaction, the plaintiff submits a statement to the court and the court pronounces judgment accordingly. Read Order XXIV Rule 4.
Illustrative Example
A plaintiff sues for Rs. 1,00,000. The defendant deposits Rs. 60,000 in court and gives notice through the court. The plaintiff may apply for payment of the Rs. 60,000, unless the court directs otherwise. Whether the plaintiff treats it as partial or full satisfaction affects the subsequent proceedings under Rule 4. Under Rule 3, the date of receipt of notice is important when calculating interest on the deposited amount.
Frequently Asked Questions
Can the plaintiff withdraw the deposited amount?
Yes. Rule 2 provides for payment on the plaintiff's application, unless the court directs otherwise.
Must the defendant notify the plaintiff?
Yes. The notice must be given through the court.
Does depositing money automatically end the suit?
No. The consequences depend on whether the deposit is accepted as full or partial satisfaction and on the court's orders under Rule 4.
Legal note: This is a general explanation of the central CPC provision. Applicable state amendments, High Court rules, and specific court orders should be checked in the relevant proceedings.