Summary Suits under CPC

In the Indian legal system, where judicial delays are a common concern, summary suits offer a quicker resolution for certain types of civil disputes. Summary suits are specifically designed to provide speedy justice, particularly in cases where the defendant’s defence is either non-existent or raises no genuine issue. This legal mechanism is governed by Order XXXVII of the Code of Civil Procedure (CPC), which aims to expedite the judicial process while still ensuring fairness to the defendant.

In this article, we will examine the concept, scope, procedure, differences from ordinary suits, and relevant case law that shapes the application of summary suits in India.

What is a Summary Suit?

A summary suit is a special type of legal proceeding under the Code of Civil Procedure (CPC) designed to provide a swift remedy in civil disputes that involve a clear-cut claim. These suits typically involve claims based on negotiable instruments (such as cheques, bills of exchange or promissory notes) or cases where the plaintiff seeks to recover a liquidated sum of money arising from an agreement or contract.

The primary goal of summary suits is to prevent unnecessary delays in resolving disputes where there is little to no dispute over the facts of the case. This mechanism is especially useful in commercial transactions where speed is often essential.

The Objective of Summary Suits

Preventing Obstruction by Defendants

The underlying objective of the summary procedure is to stop unreasonable obstruction by the defendant who has no valid defence. In ordinary civil suits, defendants have an automatic right to defend the suit and engage in lengthy trials. However, in a summary suit, a defendant can only defend the suit after obtaining leave (permission) from the court, which is granted only if the defendant can show a real and plausible dispute over the claim.

Expeditious Disposal of Cases

The summary suit procedure ensures that cases involving negotiable instruments and certain debts are disposed of quickly, saving both time and money for the parties involved. This is beneficial not only for the litigants but also for the judicial system, as it reduces the backlog of cases and allows courts to focus on more complex matters.

Applicability of Summary Suits

Types of Cases Covered

Summary suits are typically filed in the following types of cases:

• Suits based on negotiable instruments: These include bills of exchange, promissory notes, and cheques.
• Debt recovery cases: When the plaintiff seeks to recover a debt or liquidated demand in money, with or without interest, arising from:
  • A written contract,
  • An enactment (for fixed sums of money or non-penalty debts),
  • A guarantee, specifically when the claim is for a debt or liquidated demand.

These suits can be filed in cases where there is no genuine dispute over the existence of the debt or the agreement, allowing the matter to be resolved without a full trial.

Jurisdiction

Summary suits can be filed in the court that has territorial jurisdiction over the matter. The suit can be filed in:

• Courts of Small Causes,
• City Civil Courts,
• High Courts, and
• Any other court as notified by the High Court.

The High Court has the authority to modify the scope of suits that can be filed under Order XXXVII.

Key Differences Between Summary Suits and Ordinary Suits

Right to Defence

One of the most significant differences between a summary suit and an ordinary suit is the right to defend.

• In an ordinary suit, the defendant has an automatic right to defend the case. The defendant can raise a defence and present evidence to challenge the plaintiff’s claim.
• In a summary suit, the defendant does not have an automatic right to defend. The defendant must apply to the court for leave (permission) to defend the suit. The leave is granted only if the defendant can establish that there is a triable issue (a genuine dispute) regarding the claim.

Procedure

• In an ordinary suit, the process is lengthy, with witness examination, cross-examination, and production of evidence. A full trial takes place before the court decides the case.
• In a summary suit, the process is streamlined. The court may pass a judgement without a full trial if the defendant does not raise any significant objections or disputes.

Timeframe

Because the procedure is simplified, summary suits are typically resolved faster than ordinary suits. While an ordinary suit can take months or even years to conclude, a summary suit is designed to be concluded in a matter of weeks, depending on the complexity of the case.

Evidence

• In an ordinary suit, the court considers a wide range of evidence, including witness testimony and expert reports.
• In a summary suit, the court relies primarily on the written evidence, such as the negotiable instrument or the agreement, which supports the plaintiff’s claim. If the defendant raises a genuine defence, the court will allow them to present additional evidence.

Procedure for Filing a Summary Suit

The procedure for filing and defending a summary suit is laid down in Order XXXVII of the CPC. It is a simplified and faster process, as outlined below:

Initiating the Suit

The plaintiff initiates a summary suit by filing a plaint in the court with jurisdiction. Once the court accepts the plaint, it issues a summons to the defendant, informing them of the suit.

Summons for Judgement

After the summons is issued, the plaintiff serves a summons for judgement to the defendant. This is a notice asking the defendant to either:

• Accept the plaintiff’s claim and settle the matter,
• Or apply for leave to defend within the prescribed period (usually 10 days).

Leave to Defend

If the defendant wishes to defend the suit, they must apply for leave to defend. The defendant must file an affidavit explaining the facts and reasons for contesting the claim. The court examines whether the defendant’s affidavit raises a triable issue. If the court believes the defendant’s defence is valid, it grants leave to defend. If the defence is found to be frivolous or illusory, the court may reject the application and pass a decree in favour of the plaintiff.

Judgement and Decree

If the defendant does not apply for leave to defend, or if their application is rejected, the plaintiff is entitled to a decree for the amount claimed. This decree may include interest and costs.

Limitation Period for Filing a Summary Suit

The limitation period for filing a summary suit is governed by the Indian Limitation Act, 1963. According to the Act, a summary suit must be filed within three years from the date the cause of action arises.

This time limit is similar to that for ordinary suits, ensuring that claims are not delayed for an unreasonable period.

Important Case Law and Judicial Pronouncements

Over the years, the Indian judiciary has provided several important rulings that shape the practice and application of summary suits. Here are some key cases:

Southern Sales and Services v. Sauernilch Design and Handles Gmbh (2008)

This case clarified that if the defendant admits part of the amount claimed, the court may require the defendant to deposit the admitted sum as a condition for granting leave to defend. The ruling emphasised that this requirement safeguards the plaintiff’s interests while still allowing the defendant an opportunity to present their defence.

Raj Duggal v. Ramesh Kumar (1990)

In this case, the Supreme Court held that the test for granting leave to defend is whether the defendant raises a real, honest, and bona fide dispute. The ruling reinforced the principle that leave to defend should not be refused unless the defendant’s defence is clearly frivolous or lacks substance.

Wada Arun Asbestors (P.) Ltd. v. Gujarat Water Supply and Sewerage Board (2008)

The court held that the trial court could exercise its discretion to set aside a decree and grant leave to defend in special circumstances. This case highlighted the flexibility courts have in dealing with summary suits, ensuring fairness while adhering to the expedited nature of the process.

M/s Mechalec Engineers v. M/s Basic Equipment Corp. (1976)

In this landmark case, the Supreme Court clarified that summary suits cannot be filed when the dispute is not clear-cut or when a defence raises a significant factual or legal issue. The ruling underscored the importance of allowing defendants a fair chance to present genuine defences.

Special Provisions and Reliefs Under Order XXXVII

Order XXXVII also allows the court to set aside an ex parte decree under Rule 4. If a defendant fails to appear in response to a summary suit or does not file for leave to defend, the court may pass an ex parte decree. However, under special circumstances, the defendant may apply to set aside the decree, and if the court finds sufficient cause, it may allow the defendant to appear and defend the suit.

This provision ensures that no party is unjustly deprived of a hearing due to technicalities or unforeseen circumstances.

Conclusion

Summary suits under Order XXXVII of the CPC provide an essential mechanism for the swift resolution of claims involving negotiable instruments and liquidated debts. The streamlined procedure is particularly beneficial for commercial transactions and other cases where a quick resolution is necessary.