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Nolle prosequi is a Latin phrase meaning "will no longer prosecute" or a variation on the same. It amounts to a dismissal of charges by the prosecution. Some states, like New York, for example, don't use the phrase. Rather, they simply use the term dismissal.
After the notice of trial has been filed, a plaintiff can discontinue the case against a specific defendant but must have either the consent of all other parties or an order from the court to allow the discontinuance. To discontinue a claim, prepare a document called a notice of discontinuance (Form 36).
A notice of discontinuance is used when a plaintiff or applicant (someone who has commenced proceedings), or an appellant (someone who is appealing a case) decides to 'drop the case'. This means that they won't continue pursuing the case.
First if u do not want to pursue for any reason u can approch the court n request to withdraw and your case will dismiss as withdrawn,no doubt case may at any stage. Secondly case will decide on merits and after completetion of evidences of both parties, it may allow or dismiss.
Order 23, Rule 1(3) of the CPC provides that if a plaintiff desires to withdraw from the suit with liberty to institute a fresh suit in respect of the subject-matter of such suit, then such plaintiff must seek the permission of the court in its application for withdrawal.