Summary Suits under CPC
Summary Suits, as outlined in Order XXXVII of the Code of Civil Procedure, 1908 (CPC), provide a distinct and accelerated legal mechanism for the recovery of money in specific, generally undisputed, commercial and financial claims. The core aim is to prevent defendants who lack a genuine defense from employing dilatory tactics, thereby ensuring swift justice for the plaintiff.
Essence of Summary Suits:
The fundamental departure from an ordinary civil suit lies in the defendant's limited right to defend. In a summary suit, the defendant cannot automatically file a written statement and contest the case. Instead, they must first satisfy the court that they have a bona fide and triable defence to the claim by obtaining "leave to defend." If they fail to do so, the plaintiff is entitled to an immediate judgment.
Applicability (Where can a Summary Suit be filed?):
Order XXXVII, Rule 1(2) specifically enumerates the classes of suits to which this expedited procedure applies:
Suits upon Negotiable Instruments:
Bills of exchange
Hundies
Promissory notes
Suits for recovery of a debt or liquidated demand in money (with or without interest) arising:
On a written contract. (e.g., a written agreement for the sale of goods where the price is fixed and due)
On an enactment, where the sum sought to be recovered is a fixed sum of money or in the nature of a debt (excluding a penalty). (e.g., recovery of statutory dues where the amount is ascertained)
On a guarantee, where the claim against the principal debtor is in respect of a debt or liquidated demand only. (e.g., a claim against a guarantor for a specific, due debt of the principal)
Suits for recovery of receivables instituted by any assignee of a receivable.
Courts empowered to entertain Summary Suits:
High Courts
City Civil Courts
Courts of Small Causes
Any other court specifically notified by the respective High Court.
Procedure of a Summary Suit (Order XXXVII, Rules 2 & 3):
The procedure is highly streamlined, deviating significantly from that of an ordinary civil suit:
Institution of the Suit (Rule 2):
The plaintiff files a plaint (the legal complaint).
The plaint must explicitly state that it is being filed under Order XXXVII of the CPC.
It must also affirm that no relief outside the scope of Order XXXVII has been claimed.
The title of the suit must bear the inscription: "(Under Order XXXVII of the Code of Civil Procedure, 1908)".
Issuance of Summons:
The court issues a special "summons in summary suit" (Form No. 4 in Appendix B of the CPC) to the defendant.
A copy of the plaint and all relevant documents (annexures) must be served along with this summons.
Defendant's Appearance (Rule 3(1)):
The defendant has a strict time limit of 10 days from the date of service of the summons to enter an appearance in court, either in person or through a pleader.
The defendant must also inform the plaintiff or their pleader about this appearance on the same day.
Consequence of Non-Appearance:
If the defendant fails to enter an appearance within the 10-day period, the allegations in the plaint are automatically deemed to be admitted.
The plaintiff becomes entitled to a decree forthwith for the amount claimed in the summons, along with interest and costs. This is essentially an "ex parte" judgment in favor of the plaintiff.
Summons for Judgment (Rule 3(4)):
If the defendant does enter an appearance, the plaintiff must then serve a "summons for judgment" on the defendant.
This summons must be accompanied by an affidavit from the plaintiff verifying the cause of action, the amount claimed, and stating the plaintiff's belief that there is no defence to the suit.
Application for Leave to Defend (Rule 3(5)):
Upon receiving the summons for judgment, the defendant has 10 days to apply for "leave to defend" the suit.
This application must be supported by an affidavit disclosing facts that the defendant believes are sufficient to entitle them to defend. The defendant must demonstrate that there is a triable issue – a genuine and arguable point of fact or law that needs adjudication.
Grant or Refusal of Leave to Defend (Rule 3(5) & (6)):
The court scrutinizes the defendant's application and affidavit.
Unconditional Leave to Defend: The court will grant unconditional leave if it is satisfied that the defendant has a "real" or "bona fide" defence, or if the defence raises a triable issue.
Conditional Leave to Defend: The court may grant leave subject to certain conditions (e.g., depositing the claimed amount or a part of it in court, or furnishing security) if it feels the defence is not entirely bogus but has some doubts about its genuineness.
Refusal of Leave to Defend: Leave to defend will be refused if the court is convinced that the defence disclosed by the defendant is frivolous, vexatious, illusory, sham, or dishonest, and does not raise any substantial defence.
Consequences:
If leave to defend is refused, or if the defendant fails to apply for it, or fails to comply with the conditions for conditional leave, the plaintiff is entitled to judgment immediately.
If unconditional leave is granted (or conditional leave is granted and conditions are fulfilled), the suit proceeds as an ordinary civil suit from that point, with the defendant having the right to file a written statement and undergo a full trial.
Setting Aside Decree (Rule 4):
An ex parte decree passed in a summary suit can be set aside by the court if the defendant shows "special circumstances" that prevented them from appearing or applying for leave to defend. The standard of "special circumstances" is generally higher than the "sufficient cause" required to set aside an ex parte decree in an ordinary suit.
Advantages of Summary Suits:
Expedited Justice: Allows for swift resolution of claims, reducing the backlog in courts and ensuring timely recovery of dues.
Deters Frivolous Defences: The stringent requirement for "leave to defend" discourages defendants from filing a defence merely to delay proceedings when they have no real case.
Commercial Efficiency: Particularly beneficial for businesses and financial institutions, as it provides an efficient mechanism for enforcing contracts and recovering debts, thereby boosting commercial confidence.
Cost-Effectiveness: Can potentially reduce litigation costs and time for the plaintiff, who avoids a protracted trial in cases of clear liability.
In conclusion, Summary Suits are a crucial procedural tool in the CPC, designed to streamline justice delivery for specific categories of monetary claims by balancing the principles of natural justice with the imperative of judicial efficiency and commercial expediency.
RELATED Blog
0 comments