When security for costs may be demanded:
At any stage of a suit, the court may either of its own motion or on the application of any defendant, order the plaintiff, for reasons to be recorded, to give within the time fixed by it security for the payment of all costs incurred, and likely to be incurred by any defendant: provided that such an order shall be made in all cases in which it appears to the court that a sole plaintiff is, or (when there are more plaintiffs than one) that all the plaintiffs are, residing out of India and that such plaintiff does not possess or that no one of such plaintiffs possesses any sufficient immovable property within India other than the property in suit. [Order XXV, Rule (1)].
ADVERTISEMENTS:
Residence out of India:
Whoever leaves India under such circumstances as to afford reasonable probability that he will not be forthcoming whenever he may be called upon to pay costs shall be deemed to be residing out of India within the meaning of the proviso to sub-rule (1). [Order XXV, Rule 1 (2)].
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Effect of failure to furnish security:
Where the security for the payment of costs, when ordered, is not furnished within the time fixed, the court shall make an order dismissing the suit unless the plaintiff or plaintiffs are permitted to withdraw there from.
ADVERTISEMENTS:
Where a suit is dismissed for failure to furnish security for costs, the plaintiff may apply for an order to set the dismissal aside, and, if it is proved to the satisfaction of the court that he was prevented by any sufficient cause from furnishing the security within the time allowed, the court shall set aside the dismissal upon such terms as to security, costs or otherwise as it thinks fit, and shall appoint a day for proceeding with the suit. But the dismissal shall not be set aside unless notice of such application has been served on the defendant. (Order XXV, Rule 2).