Order XXV: Security for Costs

Code of Civil Procedure • First Schedule Official Statutory Text & Practice Guide

Statutory Civil Practice
Mandatory Procedure
Competent Civil Court
First Schedule

Legal Commentary & Landmark Judgments: Order 25

Order XXV empowers the civil court to order the plaintiff to furnish security for the payment of all costs incurred and likely to be incurred by any defendant, particularly where the plaintiff resides outside India and has no sufficient immoveable property in India.

  • Mandatory Security for Costs [R. 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 to give security for the payment of all costs.
  • Non-Resident Plaintiff Criterion: Court shall make such order where plaintiff resides out of India and does not possess sufficient immoveable property within India other than the suit property.
  • Dismissal for Default [R. 2]: If security is not furnished within the time fixed, the court shall make an order dismissing the suit, unless the plaintiff is permitted to withdraw.
  • Restoration Option: Dismissed suit may be restored on demonstrating that plaintiff was prevented by sufficient cause from furnishing security.
Key Landmark Precedents:
  • Salem Advocate Bar Association (II) v. Union of India, (2005) 6 SCC 344: The Supreme Court observed that Order 25 protects domestic defendants from speculative litigation instituted by foreign-resident plaintiffs who have no attachable assets in India.
  • Kailash v. Nanhku, (2005) 4 SCC 480: Affirmed that security for costs orders must be reasonable and not prohibitive of access to justice.
Courtroom Practice & Strategic Litigation Guidance:

When sued by an NRI or foreign corporation that owns no real estate in India, file an application under Order 25 Rule 1 demanding that the plaintiff deposit bank security for your costs before the trial proceeds.