Step 1: Understanding the doctrine of restitution.
The doctrine of restitution is based on the principle that no party should suffer because of an act of the court. When a decree or order is varied, reversed, or set aside, the court should restore the parties to the position they would have occupied but for such decree or order.
Step 2: Nature of Section 144 CPC.
Section 144 of the Code of Civil Procedure, 1908 does not create any new substantive right in favour of the parties. It only recognizes and regulates the procedural power of the court to grant restitution.
Step 3: Examination of incorrect options.
Option (A) is incorrect because the term ‘restitution’ is not expressly defined in Section 144. Option (B) is incorrect as the right to restitution is not a tortious or new substantive right. Option (D) is incorrect because courts do possess inherent power to grant restitution even apart from Section 144.
Step 4: Conclusion.
Therefore, the correct statement is (C), which correctly reflects the legal position regarding restitution under Section 144 CPC.