Supreme Court Rules, 2013 | Part III: Original Jurisdiction

Order XXXVI - Payment into Court under the Supreme Court Rules, 2013

Order XXXVI governs the payment of money into Court in original suits instituted before the Supreme Court of India. It incorporates the procedure in Order XXIV of the First Schedule to the Code of Civil Procedure, 1908 (CPC).

What is payment into Court?

Payment into Court is a procedural mechanism by which a defendant deposits money in satisfaction of the whole or part of a monetary claim. The plaintiff may accept the deposited sum, subject to the procedural consequences relating to the claim, balance and costs. The mechanism does not itself determine all contested rights between the parties.

Text and effect of Order XXXVI

The expression "the Code" refers to the Code of Civil Procedure, 1908. Order XXXVI therefore adopts the CPC procedure rather than laying down a separate detailed set of rules. It applies to original suits before the Supreme Court, not automatically to every appeal, special leave petition or writ petition.

Order XXIV CPC: Rules governing payment into Court

Rule 1 - Deposit by defendant

In a suit to recover a debt or damages, the defendant may, at any stage of the suit, deposit in Court such sum of money as the defendant considers to be a full satisfaction of the claim. A deposit may also relate to satisfaction of the claim to the extent permitted by the applicable procedure.

Rule 2 - Notice of deposit

Notice of the deposit must be given to the plaintiff through the Court. The plaintiff may apply to withdraw the amount deposited. The prescribed notice is significant for the consequences regarding interest and costs.

Rule 3 - Interest after notice

Under Rule 3, interest is not allowed to the plaintiff on the sum deposited from the date of receipt of notice of deposit, whether or not the deposited amount is accepted as full satisfaction of the claim.

Rule 4 - Withdrawal and consequences

Where the plaintiff accepts the deposit as satisfaction of part of the claim, the plaintiff may pursue the balance. If the plaintiff accepts the deposit in full satisfaction, the Court records that position and may address costs as provided by the rule. The allocation of costs can depend on whether the amount deposited adequately satisfies the claim and the timing of the deposit.

Practical procedure in an original suit

1. Identify the debt or damages claim and the sum proposed for deposit.
2. Seek appropriate directions for deposit and comply with the Supreme Court Registry's applicable filing and payment requirements.
3. Ensure notice of deposit is given to the plaintiff in accordance with Order XXIV CPC.
4. Where withdrawal or acceptance is sought, clarify whether it is in full or partial satisfaction of the claim.
5. Request appropriate orders on the remaining claim, interest and costs, as applicable.

Payment into Court should be distinguished from court fees, security for costs and deposits required by an interim or final judicial order: each may be governed by different provisions.

Official legal resources

For the authoritative text and current procedural notices, consult the Supreme Court of India, its Rules resources, and India Code for the Code of Civil Procedure, 1908. Check the current Rules and practice directions before filing.