Every civil suit needs two basic housekeeping steps taken care of before it can genuinely move forward: the plaint must carry the correct court fee, and the defendant must be properly served with summons, which in practice means the plaintiff has to pay for that service to happen. Both requirements exist to keep the litigation machinery functioning, and both come with a consequence if the plaintiff simply does not comply within the time the court has fixed.
On the court fee side, Order VII Rule 11(c) treats a plaint as liable to rejection where it is insufficiently stamped and the plaintiff, having been given a specific time to make up the deficiency, fails to do so. Rejection of the plaint under this provision has the practical effect of ending that suit. On the summons side, Order V requires the plaintiff to arrange for service, including paying for the process, and if the plaintiff does not do so within the time allowed, courts routinely dismiss the suit for the plaintiff's failure to take the steps necessary to prosecute it.
Returning the plaint for fresh presentation belongs to a different scenario altogether, namely a suit filed in the wrong court. A stay until service is somehow effected does not solve anything if the plaintiff has already shown an unwillingness or inability to pay for it. And proceeding to decide the suit on its merits is simply not available where the basic procedural steps needed to get the suit properly on its feet have not been completed.
So where the plaintiff defaults on paying the court fee or the postal charges for summons within the time fixed, the consequence under the Code is dismissal of the suit.