Rule 1 Order XXIV of Code of Civil Procedure 1908 "Deposit by defendant of amount in satisfaction of claim"
The defendant in any suit to recover a debt or damages may, at any stage of the suit, deposit in Court such sum of money as he considers a satisfaction in full of the claim.
Rule 2 Order XXIV of Code of Civil Procedure 1908 "Notice of deposit"
Notice of the deposit shall be given through the Court by the defendant to the plaintiff, and the amount of the deposit shall (unless the Court otherwise directs) be paid to the plaintiff on his application.
Rule 3 Order XXIV of Code of Civil Procedure 1908 "Interest on deposit not allowed to plaintiff after notice"
No interest shall be allowed to the plaintiff on any sum deposited by the defendant from the date of the receipt of such notice, whether the sum deposited is in full of the claim or falls short thereof.
Rule 4 Order XXIV of Code of Civil Procedure 1908 "Procedure where plaintiff accepts deposit as satisfaction in part"
(1) Where the plaintiff accepts such amount as
satisfaction in part only of his claim, he may prosecute his
suit for the balance; and, if the Court decides that the
deposit by the defendant was a full satisfaction of the
plaintiff's claim, the plaintiff shall pay the costs of the
suit incurred after the deposit and the costs incurred
previous thereto, so far as they were caused by excess in
the plaintiff's claim.
(2) Procedure where he accepts it as satisfaction in full
Where the plaintiff accepts such amount as satisfaction in
full of his claim, he shall present to the Court a statement
to that effect, and such statement shall be filed and the
Court shall pronounce judgment accordingly; and, in
directing by whom the costs of each party are to be paid,
the Court shall consider which of the parties is most to
blame for the litigation.
Illustrations
(a) A owes B Rs. 100B sues A for the amount, having made no
demand for payment and having no reason to believe that the
delay caused by making a demand would place him at a
disadvantage. On the plaint being filed, A pays the money
into Court, B accepts it in full satisfaction of his claim,
but the Court should not allow him any costs, the litigation
being presumably groundless on his part.
(b) B sues A under the circumstances mentioned in
illustration (a). On the plaint being filed, A disputes the
claim Afterwards A pays the money into Court. B accepts it
in full satisfaction of his claim. The Court should also
give B his cast of suit. A's conduct having shown that the
litigation was necessary.
(c) A owes B Rs. 100, and is willing to pay him that sum
without suit. B claims Rs. 1150 and sues A for that amount.
On the plaint being filed, A pays Rs. 100 into Court, and
disputes only his liability to pay the remaining Rs. 50. B
accepts the Rs.100 in full satisfaction of his claim. The
Court should order him to pay A's costs.