A caveat (Latin: "beware") is a formal notice filed in court by a party warning the court not to pass any order without giving that party an opportunity to be heard. Under Section 148-A of the CPC, a caveat can be filed if the caveator has a right to appear before the court when an application may be made against their interest.
In practice, a caveat is a defensive early-warning device. A party who fears that an opponent is about to obtain an order behind its back — typically an ex-parte injunction or stay — lodges a caveat under Section 148-A CPC so the court cannot pass any order on that application without first hearing the caveator. In debt-recovery work, banks frequently caveat before anticipated borrower injunction petitions, and borrowers caveat where they expect a bank to seek urgent ex-parte relief. The practical payoff is the right to notice and a hearing, which neutralises the surprise advantage that ex-parte applications are designed to give. A caveat lapses after ninety days, so it must be renewed if the threatened proceeding has not yet been filed; an expired caveat gives no protection. Filing it in the correct court — the one where the application is likely to be made — is essential, since a caveat lodged in the wrong forum is worthless. Well-advised parties confirm the likely forum before lodging.
For specific advice on how Caveat applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 8+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates