Order XXV CPC Rules 1 and 2: Security for Costs
Order XXV of the Code of Civil Procedure, 1908 empowers the Court to require a plaintiff to furnish security for the defendant's costs in appropriate cases. It also sets out the consequence of failure to furnish security and the procedure for restoration where a suit has been dismissed for that failure.
Rule 1 Order XXV - When security for costs may be required from plaintiff
(1) At any stage of a suit, the Court may, either of its own motion or on the application of any defendant, order the plaintiff, for reasons to be recorded, to give within the time fixed by it security for the payment of all costs incurred and likely to be incurred by any defendant:
Provided that such an order shall be made in all cases in which it appears to the Court that a sole plaintiff is, or, when there are more plaintiffs than one, that all the plaintiffs are, residing out of India and that such plaintiff does not possess, or that no one of such plaintiffs possesses, any sufficient immovable property within India other than the property in suit.
(2) Whoever leaves India under such circumstances as to afford reasonable probability that he will not be forthcoming whenever he may be called upon to pay costs shall be deemed to be residing out of India within the meaning of the proviso to sub-rule (1).
Rule 2 Order XXV - Effect of failure to furnish security
(1) In the event of such security not being furnished within the time fixed, the Court shall make an order dismissing the suit unless the plaintiff or plaintiffs are permitted to withdraw therefrom.
(2) Where a suit is dismissed under this rule, the plaintiff may apply for an order to set the dismissal aside and, if it is proved to the satisfaction of the Court that he was prevented by any sufficient cause from furnishing the security within the time allowed, the Court shall set aside the dismissal upon such terms as to security, costs or otherwise as it thinks fit, and shall appoint a day for proceeding with the suit.
(3) The dismissal shall not be set aside unless notice of such application has been served on the defendant.
Key points under Order XXV CPC
The Court may require security for costs either on its own motion or on a defendant's application, but reasons must be recorded. The proviso to Rule 1 requires such an order where the plaintiff or all plaintiffs reside outside India and do not possess sufficient immovable property in India, apart from the property in suit.
If security is not furnished within the time fixed, Rule 2 requires dismissal unless withdrawal is permitted. A dismissed suit may be restored where sufficient cause for the failure is proved, but the defendant must first receive notice of the restoration application.
This page reproduces and explains the central statutory provisions for general legal information. Jurisdiction-specific amendments and current court rules should be checked before relying on the provision in a particular proceeding.