Order XLIX - Costs under the Supreme Court Rules, 2013
Order XLIX of the Supreme Court Rules, 2013 deals with the award of costs in proceedings before the Supreme Court of India. It sets out the Court's discretion to award costs, circumstances in which an Advocate-on-Record may personally bear costs, and the power to award a lump sum instead of costs calculated through taxation.
Meaning and legal basis of costs
In court proceedings, costs ordinarily refer to expenses of or incidental to litigation that a court directs one person to pay to another. They are distinct from court fees payable for filing and from damages or substantive monetary relief. The amount, incidence and recoverability of costs depend on the applicable statute, the Supreme Court Rules and the Court's order.
Article 145(1)(f) of the Constitution of India empowers the Supreme Court, with the approval of the President and subject to Parliamentary law, to frame rules regarding costs of and incidental to proceedings and fees charged in respect of proceedings. Order XLIX provides the specific procedural rules on costs. For determining the amount of taxed costs, see Order L - Taxation.
Rule 1 - Discretion of the Court and costs of interveners
Subject to the provisions of any Statute or of these rules, the costs of and incidental to all proceedings, shall be in the discretion of the Court. Unless the Court otherwise orders an intervener shall not be entitled to costs.
Explanation: The Supreme Court decides whether costs should be awarded and, where appropriate, who should bear them. That discretion is subject to any governing statute or other applicable Supreme Court Rule. A party intervening in a proceeding does not automatically acquire a right to costs; an express order of the Court is required.
Rule 2 - Personal liability of an Advocate-on-Record
Where it appears that the hearing of any suit or matter cannot conveniently proceed by reason of the Advocate-on-record of any party having neglected to attend personally or by some proper person on his behalf, or having omitted to deliver any paper necessary for the use of the Court which are in his possession and which according to the practice ought to have been delivered, the Advocate-on-record shall personally pay to all or any of the parties such costs as the Court may think fit to award.
Explanation: Where a hearing cannot conveniently proceed because the Advocate-on-Record (AOR) fails to attend or arrange proper representation, or fails to supply a necessary document in the AOR's possession that ought to have been delivered, the Court may order the AOR to pay costs personally. The provision addresses the consequences of specified defaults that disrupt the hearing; it is not an automatic penalty for every adjournment.
Rule 3 - Lump-sum costs instead of taxed costs
Where in any proceeding, costs are awarded to any party, the Court may direct the payment of a sum in gross in lieu of taxed costs and may further direct by and to whom the said sum shall be paid.
Explanation: The Court may fix a single gross or lump-sum amount, rather than requiring an item-by-item calculation of costs. It may also specify who must pay and who will receive that amount. Taxed costs are costs examined and allowed under the taxation procedure; Order L provides the related framework.
Practical points on costs in Supreme Court proceedings
- An award of costs depends on the applicable law and the Court's discretion; the outcome of the case does not alone fix a particular amount.
- Interveners ordinarily bear their own costs unless the Court orders otherwise.
- An AOR can be directed to pay costs personally for the failures specified in Rule 2.
- The Court may award a fixed amount instead of sending costs for taxation.
- The operative order should be checked for the amount, payer, recipient and any payment directions.
Official legal resources
For the authoritative rules and subsequent notifications, consult the Supreme Court of India - Supreme Court Rules and amendments. The Supreme Court's official website also provides judgments, orders, notices and procedural information. Amendments should be checked against the official notifications for any later change affecting a particular proceeding.