Withdrawal of counterclaim

Withdrawal is not possible in Appeals.

An Appeal is decided on merits whether the Parties turn up or not.

Appeal you meant to say apply for withdrawal  i think. You mean to say that wife wants to withdraw the counterclaim from the case in the family court ;yes she can withdraw but what do you mean with prejudice ?

The court may impose conditions for withdrawal but that cannot be prejudicail to the rights of party.