Settlement of Issues and Determination of Suit on Issues of Law or on Issues Agreed Upon

Settlement of Issues and Determination of Suit on

Issues of Law or on Issues agreed upon

(1) Issues arise when a material proposition of fact or law is affirmed by the

one party and denied by the other.

(2) Material propositions arc those propositions of law or fact which a plaintiff must allege in order to

show a right to sue or a defendant must allege in order to constitute his defence.

(3) Each material proposition affirmed by one party and denied by the other shall form the subject of

distinct issue.

(4) Issues are of two kinds:

(a) issues of fact,

(b) issues of law.

(5) At the first hearing of the suit the Court shall, after reading the plaint and the written statements if

any, and 1[after examination under rule 2 of Order X and after hearing the parties or their pleaders],

ascertain upon what material propositions of fact or of law the parties are at variance, and shall thereupon

proceed to frame and record the issues on which the right decision of the case appears to depend.

(6) Nothing is this rule requires the Court to frame and record issued where the defendant at the first

hearing of the suit makes no defence.

2

(1) Notwithstanding that a case may be disposed

of on a preliminary issue, the Court shall, subject to the provisions of sub-rule (2), pronounce judgment

on all issues.

(2) Where issues both of law and of fact arise in the same suit, and the Court is of opinion that the case or

any part thereof may be disposed of on an issue of law only, it may try that issue first if the issue relates to—

(a) the jurisdiction of the Court, or

(b) a bar to the suit created by any law for the time being in force,

and for that purpose may, if it thinks fit, postpone the settlement of the other issues until after that issue

has been determined, and may deal with the suit in accordance with the decision on that issue.]

of the following materials:—

(a) allegations made on oath by the parties, or by any persons present on their behalf, or made by

the pleaders of such parties;

(b) allegations made in the pleadings or in answers to interrogatories delivered in the suit;

(c) the contents of documents produced by either party.

opinion that the issues cannot be correctly framed without the examination of some person not before the

Court or without the inspection of some document not, produced in the suit, it 3[may adjourn the framing

of issues to a day not later than seven days] and may (subject to any law for the time being in force)

compel the attendance of any person or the production of any document by the person in whose

possession or power it is by summons or other process.

4

(1) The Court may at any time before passing a decree

amend the issues or frame additional issues on such terms as it thinks fit, and all such amendments or

additional issues as may be necessary for determining the matters in controversy between the parties shall

be so made or framed.

1. Subs. by Act 104 of 1976, s. 64, for certain words (w.e.f. 1-2-1977).

2. Subs. by s. 64, ibid., for rule 2 (w.e.f. 1-2-1977).

3. Subs. by Act 46 of 1999, s. 24, for certain words (w.e.f. 1-7-2002).

4. Subs. by Act 22 of 2002, s. 11, for rule 5 (w.e.f. 1-7-2002).

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(2) The Court may also, at any time before passing a decree, strike out any issues that appear to it to

be wrongly framed or introduced.]

(1) Where the parties

to a suit are agreed as to the question of fact or of law to be decided between them, they may state the

same in the form of an issue, and enter into an agreement in writing that, upon the finding of the Court in

the affirmative or the negative or such issue,—

(a) a sum of money specified in the agreement or to be ascertained by the Court, or in such

manner as the Court may direct, shall be paid by one of the parties to the other of them, or that one of

them be declared entitled to some right or subject some liability specified in the agreement;

(b) some property specified in the agreement and in dispute in the suit shall be delivered by one

of the parties to the other of them, or as that other may direct; or

(c) one or more of the parties shall do or abstain from doing some particular act specified in the

agreement and relating to the matter in dispute.

Where the Court is satisfied, after making such inquiry as it deems proper,—

(a) that the agreement was duly executed by the parties,

(b) that they have a substantial interest in the decision of such question as aforesaid, and

(c) that the same is fit to be tried and decided,

it shall proceed to record and try the issue and state its finding or decision thereon in the same manner as

if the issue had been framed by the Court;

and shall, upon the finding or decision on such issue, pronounce judgment according to the terms of

the agreement; and, upon the judgment so pronounced, a decree shall follow.

*[ORDER XV

Disposal of the Suit at the first hearing

(1) Where at the first hearing of a suit it appears that the parties are not at

issue on any question of law or of fact, the Court may at once pronounce judgment.

one of the defendants is not at issue with the plaintiff on any question of law or of fact, the Court may at once

pronounce judgment for or against such defendant and the suit shall proceed only against the other

defendants.]

2

[(2) Whenever a judgment is pronounced under this rule, decree shall be drawn up in accordance with

such judgment and the decree shall bear the date on which the judgment was pronounced.]

(1) Where the parties are at issue on some question of law or of fact, and issues

have been framed by the Court as hereinbefore provided, if the Court is satisfied that no further argument

or evidence that the parties can at once adduce is required upon such of the issues as may be sufficient for

the decision of the suit, and that no injustice will result from proceeding with the suit forthwith, the Court

may proceed to determine such issues, and, if the finding thereon is sufficient for the decision, may

pronounce judgment accordingly, whether the summons has been issued for the settlement of issues only

or for the final disposal of the suit:

Provided that, where the summons has been issued for the settlement of issues only, the parties or their

pleaders are present and none of them objects.

1. Rule 2 renumbered as sub-rule (1) by Act 104 of 1976, s. 65 (w.e.f. 1-2-1977).

2. Ins. by s. 65, ibid. (w.e.f 1-2-1977).

*. Shall be applicable to commercial disputes of a specified value by Act 4 of 2016, s. 16 and the Sch. (w.e.f. 23-10-2015).

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(2) Where the finding is not sufficient for the decision, the Court shall postpone the further hearing of

the suit, and shall fix a day for the production of such further evidence, or for such further argument as

the case requires.

suit and either party fails without sufficient cause to produce the evidence on which he relies, the Court

may at once pronounce judgment, or may, if it thinks fit, after framing and recording issues, adjourn the

suit for the production of such evidence as may be necessary for its decision upon such issues.]

*[ORDER XV-A

Case Management Hearing

later than four weeks from the date of filing of affidavit of admission or denial of documents by all parties

to the suit.

hearing the parties, and once it finds that there are issues of fact and law which require to be tried, the

Court may pass an order––

(a) framing the issues between the parties in accordance with Order XIV of the Code of Civil

Procedure, 1908 (5 of 1908), after examining pleadings, documents and documents produced before

it, and on examination conducted by the Court under Rule 2 of Order X, if required;

(b) listing witnesses to be examined by the parties;

(c) fixing the date by which affidavit of evidence to be filed by parties;

(d) fixing the date on which evidence of the witnesses of the parties to be recorded;

(e) fixing the date by which written arguments are to be filed before the Court by the parties;

(f) fixing the date on which oral arguments are to be heard by the Court; and

(g) setting time limits for parties and their advocates to address oral arguments.

Rule 2 of this Order, the Court shall ensure that the arguments are closed not later than six months from

the date of the first Case Management Hearing.

that the recording of evidence shall be carried on, on a day-to-day basis until the cross-examination of all

the witnesses is complete.

Management Hearings anytime during the trial to issue appropriate orders so as to ensure adherence by

the parties to the dates fixed under Rule 2 and facilitate speedy disposal of the suit.

(1) In any Case Management Hearing

held under this Order, the Court shall have the power to—

(a) prior to the framing of issues, hear and decide any pending application filed by the parties

under Order XIII-A;

(b) direct parties to file compilations of documents or pleadings relevant and necessary for

framing issues;

(c) extend or shorten the time for compliance with any practice, direction or Court order if it finds

sufficient reason to do so;

(d) adjourn or bring forward a hearing if it finds sufficient reason to do so;

(e) direct a party to attend the Court for the purposes of examination under Rule 2 of Order X;

(f) consolidate proceedings;

*. Shall be applicable to commercial disputes of a specified value by Act 4 of 2016, s. 16 and the Sch. (w.e.f. 23-10-2015).

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(g) strike off the name of any witness or evidence that it deems irrelevant to the issues framed;

(h) direct a separate trial of any issue;

(i) decide the order in which issues are to be tried;

(j) exclude an issue from consideration;

(k) dismiss or give judgment on a claim after a decision on a preliminary issue;

(l) direct that evidence be recorded by a Commission where necessary in accordance with Order

XXVI;

(m) reject any affidavit of evidence filed by the parties for containing irrelevant, inadmissible or

argumentative material;

(n) strike off any parts of the affidavit of evidence filed by the parties containing irrelevant,

inadmissible or argumentative material;

(o) delegate the recording of evidence to such authority appointed by the Court for this purpose;

(p) pass any order relating to the monitoring of recording the evidence by a commission or any

other authority;

(q) order any party to file and exchange a costs budget;

(r) issue directions or pass any order for the purpose of managing the case and furthering the

overriding objective of ensuring the efficient disposal of the suit.

(2) When the Court passes an order in exercise of its powers under this Order, it may—

(a) make it subject to conditions, including a condition to pay a sum of money into Court; and

(b) specify the consequence of failure to comply with the order or a condition.

(3) While fixing the date for a Case Management Hearing, the Court may direct that the parties also

be present for such Case Management Hearing, if it is of the view that there is a possibility of settlement

between the parties.

(1) The Court shall not adjourn the Case

Management Hearing for the sole reason that the advocate appearing on behalf of a party is not present:

Provided that an adjournment of the hearing is sought in advance by moving an application, the Court

may adjourn the hearing to another date upon the payment of such costs as the Court deems fit, by the

party moving such application.

(2) Notwithstanding anything contained in this Rule, if the Court is satisfied that there is a justified

reason for the absence of the advocate, it may adjourn the hearing to another date upon such terms and

conditions it deems fit.

of the Court passed in a Case Management Hearing, the Court shall have the power to—

(a) condone such non-compliance by payment of costs to the Court;

(b) foreclose the non-compliant party’s right to file affidavits, conduct cross-examination of

witnesses, file written submissions, address oral arguments or make further arguments in the trial, as

the case may be, or

(c) dismiss the plaint or allow the suit where such non-compliance is wilful, repeated and the

imposition of costs is not adequate to ensure compliance.]