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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.
File your forms at the courthouse where you filed your case. The court clerk will process your Request for Dismissal (Form CIV-110) and Form CIV-120. The clerk will keep the original and return the copies of Form CIV-110 to you, stamped "Filed." Keep one for your records.
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if u do not want to pursue for any reason u can approch the court n request to withdraw and your case will dismiss as withdrawn,no doubt case may at any stage.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.
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Dismissed-no cost means the petition has been dismissed to the favour of the respondent, but the petitioner need not pay any litigation expenses to the respondent.