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SUMMARY SUITS AND COMMERCIAL DISPUTES

Summary suits are governed under Order 37 of the the Civil Procedure Code 1908. It can be termed as the suit upon promissory notes, hundies, negotiable Instruments etc evidencing the terms of the debt.

Essential requirements of debt : it shall be an amount which is ascertainable, calculated and owed in present. This means that only in cases where the amount covered under the instruments is determinable, only then the suit can be filed under this provision. Example:

  • Good sold and delivered under an invoice.
  • Recovery of admitted amount of rent is also covered under this provision
In such cases, the defendant has to appear within 10 days of; receipt of the notice/summons failing to which the plaintiff becomes entitled to judgment under section 118 of the limitation act. The said period cannot be extended by filing an application.

Conditions for leave to defend :-
  1. If defendant (person against whom the case is filed) satisfies the court that he has good defence, he is entitled to unconditional leave to defend.
  2. If the defendant is able to show so that he has Bonafide defence, then also Court may give leave to defend.
  3. If the court comes to the conclusion that the defendant has shown that some triable issues are made out, then also the court may grant leave to defend subjected to conditions.
In all other circumstances where defendant is not able to satisfy the court then plaintiff is entitled to judgement. The benefit of filing a suit under this provision is that without any delay the court may pronounce judgement in accordance with the documents on record.

Commercial dispute defined under sub clause (vii) of section 2(1)(c) of the the Commercial Courts Act, can also be filed under the head of summary suit. But an important distinction is made under Order 13 Rule 1(A) of Civil Procedure Code which deals in cases where either defendant or plaintiff is entitled to summary judgement, the word used here is "claim" thus even the defendant can also file the suit under this head.

At what stage the suit can be filed
At any time after the summons have been served but not after framing of the issues

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