Order XXVII Rule 5B CPC - Duty of Court to Assist Settlement in Government Suits

Order XXVII Rule 5B of the Code of Civil Procedure, 1908 requires courts, where consistent with the nature and circumstances of the case, to make an initial effort to help parties settle suits or proceedings involving the Government or a public officer acting in an official capacity.

Text of Order XXVII Rule 5B CPC

Purpose and scope of Rule 5B

The rule recognises that disputes involving public authorities may sometimes be resolved through agreement rather than prolonged litigation. It places a positive duty on the court to explore a settlement at the outset when doing so is feasible and appropriate. It does not compel the Government or the other party to accept a settlement, nor does it dispense with lawful approval and authority requirements.

Explanation of the three sub-rules

Rule 5B(1): Initial effort to encourage settlement

In every covered suit or proceeding, the court must make an endeavour, in the first instance, to assist settlement where possible and consistent with the nature and circumstances of the dispute. The duty is to make an appropriate effort, not to guarantee an agreement.

Rule 5B(2): Adjournment when settlement is reasonably possible

At any stage of the proceedings, if a reasonable possibility of settlement appears, the court may adjourn for a period it considers fit so the parties can explore resolution. This power is discretionary and depends on the circumstances.

Rule 5B(3): Additional adjournment power

The specific power under Rule 5B(2) supplements, rather than replaces, other procedural powers to adjourn proceedings, including the general framework under Order XVII CPC.

Meaning of important legal terms

• Government: for the purposes of Order XXVII, the relevant Central or State Government as explained by Order XXVII Rule 8B.
• Public officer: Section 2(17) CPC defines this term through specified categories of persons performing public functions. Whether a defendant falls within the definition depends on the statutory category and facts.
• Official capacity: conduct connected with the performance of the officer's official duties, rather than purely personal conduct.
• Settlement: a mutually acceptable resolution of the dispute, subject to applicable legal and administrative requirements.
• Adjournment: postponement of a hearing or procedural step by the court for an appropriate period.

Related provisions and settlement procedures

• Section 79 CPC: provides for the designation of the Union of India or a State in suits by or against Government.
• Section 80 CPC: generally requires statutory notice before certain suits against Government or public officers for acts purporting to be done in official capacity, subject to exceptions including urgent relief under Section 80(2).
• Section 89 CPC: provides for court-led referral to recognised alternative dispute resolution processes where applicable.
• Order X Rule 1A CPC: addresses directions to parties to opt for a mode of settlement outside court after admissions and denials.
• Order XXIII Rule 3 CPC: governs recording a lawful compromise of a suit in writing and signed by the parties, subject to the rule's requirements.
• Order XXVII Rule 5A: addresses joining the Government in certain suits against public officers.
• Order XXVII Rule 8B: explains Government and Government pleader for Order XXVII.

How Rule 5B works in practice

For example, where a contractor disputes payment for work performed for a government department, the court may identify whether the parties can resolve the dispute through reconciliation of bills, records and authorised negotiations. If there is a reasonable prospect of agreement, the court may allow time for settlement discussions. If settlement fails, the case ordinarily continues in accordance with procedural law.

A settlement involving a government body may require approval from an officer or authority empowered to bind it. A government lawyer's participation alone should not be assumed to establish authority to compromise every claim.

Does Rule 5B make settlement mandatory?

No. The court's initial duty is to endeavour to assist settlement where appropriate. Parties are not required by this rule to reach agreement. The court also need not adjourn indefinitely; Rule 5B(2) requires a reasonable possibility of settlement and gives the court discretion over the period.

Official legal reference

For the enacted Code and First Schedule, consult the Code of Civil Procedure, 1908 on India Code. Check relevant amendments, local rules and current judicial directions for the jurisdiction concerned.

Frequently asked questions

Does Rule 5B apply only when the Government is a defendant?

No. Its wording extends to every suit or proceeding to which the Government or a public officer acting in an official capacity is a party, subject to its stated qualifications.

Can settlement be considered after trial begins?

Yes. Rule 5B(2) expressly permits the court to consider adjournment for possible settlement at any stage.

Can the court force a public officer to settle?

No. Rule 5B supports settlement efforts; it does not override requirements of consent, legality or competent authorisation.

This article provides general legal information. Statutory amendments, local procedural rules and the particular facts of a case may affect the result.