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Union Of India And Others vs Manager M/S Jain And Associates on 6 February, 2001

3. The legal position as regards the application of the Code of Civil Procedure to proceedings under the Arbitration Act, 1940 is settled by the decision of the Supreme Court in Union of India and Ors. v. Manager, Jain and associates . Dismissal of a suit on merits in the absence of the plaintiff is not an option with the Court under Order 9 Rule 8 of the Code of the Civil Procedure unless the defendant has admitted either in whole or part the claim made in the suit, which was not the position in the instant case. So also the Court may decide the matter on merits under Order 17 Rule 2 only in case substantial part of the evidence had already been recorded. That is evident from the reading of the explanation to Rule 2 of Order 17 of the CPC. The position is no different in relation to appeals, which too can be dismissed only in default under Order 41 Rule 17 and not on merits. Explanation to Rule 17 of Order 41 makes that position amply clear. We need not dwell any further on the legal proposition that a Court cannot dismiss a suit or an appeal on merits in the absence of the plaintiff or appellant except in situations covered by Order 9 Rule 8 and Order 17 Rule 2 of the CPC. The present case did not, however, fall in anyone of these situations. Mr. Sharma was, therefore, perfectly right in conceding that the order passed by the Single Judge was legally unsustainable and that the matter shall have to be remitted back for a fresh hearing and disposal in accordance with law.
Supreme Court of India Cites 20 - Cited by 84 - Full Document
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