31 July 2020
The phrase “dismissed as default’ means the party filed the suit withdrew the claim or suit and therefore the suit remains dismissed. The court can dismiss a suit, even without trial, for many reasons including party’s withdrawal.
The dismissal as default can be on account of out of court settlement or threat by the court to impose cost for abuse or abandonment of the claim by the party on other grounds. Whatever be, the suit is no longer in existence as it is withdrawn but a fresh claim cannot be brought in because the court has not permitted the party file fresh suit, as a condition of withdrawl.
But if the withdrawal is with court’s permission on account of some formal defect, then the court will allow the party to bring in fresh suit on the same subject. In that case the court will write more or less like this: dismissed as withdrawn but without prejudice to bring a fresh suit.
This issue is provided in Order 23 Rule 3 of the Civil Procedure Code, which is available online.