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Supreme Court of India· 11 August 2026

Under Order VIII Rule 6A to 6D of the Code of Civil Procedure, 1908, why is a counterclaim not required to be pursued through a wholly separate appeal?

Basudev & Ors v. Sanjay Kumar & Ors
2026 INSC 831 · SLP (C) No.4338 of 2025
Coram: K. Vinod Chandran; J. B. Pardiwala
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Answer

Because Rule 6D provides that even if the suit is stayed, discontinued or dismissed, the counterclaim may nevertheless be proceeded with, and the counterclaim is so interlinked with the suit claim, being deemed a plaint and adjudicated together on the evidence led at one trial, that it does not require two appeals to be filed from a single common judgment.

Headnote

Code of Civil Procedure, 1908 — Order VIII Rules 6A to 6D — Order XX Rule 19 — Suit and counterclaim disposed of by a common judgment — Maintainability of a composite appeal — Held: The decisions of various High Courts reveal a cleavage of opinion on whether two separate appeals must be filed against the two decrees — one dismissing the suit, the other allowing the counterclaim, or vice versa — drawn up pursuant to a common judgment, and on whether two decrees are required to be drawn up at all. (¶2, 18) Code of Civil Procedure, 1908 — Order VIII Rules 6A to 6D — Counterclaim treated as cross-suit — Composite appeal against common judgment maintainable — Held further: Since Order VIII Rules 6A to 6D of the Code of Civil Procedure, 1908 treat a counterclaim as a cross-suit interlinked with the suit claim so that both are adjudicated together on the evidence led at one trial, a suit and a counterclaim disposed of by a single common judgment can be challenged by a composite appeal; the composite appeal must, however, show the grounds raised against the decree in the suit and the decree in the counterclaim separately, whether one or two decrees have been drawn up, and must be valued and have court fees paid as for two separate appeals. (¶18, 19, 29) Code of Civil Procedure, 1908 — Composite appeal — First appeal restored — Fresh memorandum with separate grounds permitted — Held further: Since only a single appeal had earlier been filed and was rejected as incompetent, the impugned orders of the High Court and the First Appellate Court are set aside and the first appeal restored; the appellant is permitted to file a fresh memorandum with separate grounds and pay court fees for the additional appeal, to be considered by the First Appellate Court along with the earlier appeal. (¶30, 31)

In the Court's own words
Paragraph 19We also agree with the finding that when Rule 6C of Order VIII excludes a counterclaim, when it is an independent cause required to be agitated in an independent suit, it implies that a counterclaim should be so interlinked with the suit claim to facilitate adjudication of both; on the evidence led at one trial. It is noticing Rule 6D, that, even if the suit is stayed, discontinued or dismissed, the counterclaim may nevertheless be proceeded with; that Rajni Rani[^11] expressed the opinion, that a suit even if dismissed the counterclaim survives, which was misinterpreted by two High Courts to find a requirement CA @ SLP (C) No.4338 of 2025 for two appeals from a common judgment adjudicating a suit and counter claim.
Acts & Sections
Section 5 of the Limitation ActSection 11 of the Code of Civil Procedure, 1908Section 96 of the Code of Civil Procedure, 1908Section 152 of the Code of Civil Procedure, 1908Order XLI Rule 1 of the Code of Civil Procedure, 1908Order XLI Rule 33 of the Code of Civil Procedure, 1908Order XX Rule 19 of the Code of Civil Procedure, 1908Order VIII Rule 6A of the Code of Civil Procedure, 1908Order II Rule 2 of the Code of Civil Procedure, 1908Order XX Rule 6A of the Code of Civil Procedure, 1908Article 227 of the Constitution of IndiaArticle 141 of the Constitution of India

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Also decided in this judgment
Under the Code of Civil Procedure, 1908, can a single composite appeal be filed against the two decrees drawn up when a suit and a counterclaim are disposed of by one common judgment?Under the Code of Civil Procedure, 1908, what must a composite appeal against decrees passed on a suit and a counterclaim show, and how must it be valued for court fees?Under Section 96 of the Code of Civil Procedure, 1908, does an appeal lie from a decree or from a judgment?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections