A/4471/2026 of Mr. N. Senthil Kumar and 2 others Vs Mr. K. Nalliah on 2 November 2026

ORDER

This application has been filed under Order XXIII Rule 1(3) of the Code of Civil Procedure, 1908, seeking permission to withdraw the present suit with liberty to institute a fresh suit on the same cause of action.

2. The suit in C.S.No.76 of 2026 has been instituted seeking partition and permanent injunction. The plaintiffs contend that the sole defendant holds a 40% share in a partnership firm, namely, Ganga Sweets, in which the plaintiffs are also partners. It is their further case that certain properties were purchased in the name of the defendant out of the income generated by the firm and are, therefore, liable to be treated as joint properties.

3. The applicants/plaintiffs submit that, during the pendency of the suit, the parties entered into a family arrangement dated 14.05.2026. Under the said arrangement, the defendant agreed to retire from the partnership firm, Ganga Sweets, upon receiving a sum of Rs.5,00,00,000/- (Rupees Five Crores only). According to the plaintiffs, the defendant has received the entire amount agreed upon under the family arrangement.

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4. The plaintiffs further submit that, pursuant to the family arrangement, the partnership firm has been reconstituted and the reconstitution has been duly registered with the Registrar of Firms, Chennai. It is their specific case that suit schedule Item Nos.1 to 3, 8 to 10 and 13 to 14 belong to the partnership firm and that, consequent upon the defendant’s retirement from the firm, the defendant has no subsisting right or claim over those properties.

5. In view of the subsequent developments, the applicants/plaintiffs contend that the nature and scope of the dispute have materially changed and that the present suit, in its existing form, may no longer be appropriate for adjudication of the rights of the parties. They, therefore, seek permission to withdraw the suit with liberty to institute a fresh suit on the same cause of action.

6. It is relevant to note that this Court, by order dated 11.06.2026, set the sole defendant ex parte. No contest has, therefore, been raised to the present application.

7. The power under Order XXIII Rule 1(3) CPC can be exercised where the Court is satisfied that the suit must fail by reason of a formal defect or that there are sufficient grounds for permitting the plaintiff to institute a fresh suit in respect of the same subject matter. In the present case, the plaintiffs rely upon a subsequent family arrangement dated 14.05.2026, the receipt of the alleged agreed consideration by the defendant and the consequent reconstitution of the partnership firm. These developments have a direct bearing on the nature of the

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dispute and the reliefs sought in the present suit.

8. Having regard to the subsequent developments pleaded by the applicants/plaintiffs, this Court is satisfied that sufficient grounds have been made out for permitting them to withdraw the present suit with liberty to institute a fresh suit in respect of the same subject matter.

9. Accordingly, Application No.4471 of 2026 is allowed. The applicants/plaintiffs are permitted to withdraw C.S.No.76 of 2026 with liberty to institute a fresh suit in respect of the same subject matter, in accordance with law.

10. It is made clear that this Court has not expressed any opinion on the validity, binding nature or legal effect of the family arrangement dated 14.05.2026, the reconstitution of the partnership firm, or the respective rights of the parties in the suit schedule properties. All questions of fact and law are left open to be agitated in appropriate proceedings. 02-11-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No mk

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HEMANT CHANDANGOUDAR, J. mk A No. 4471 of 2026 in C.S.No.76 of 2026 02-11-2026 (1/2)