Summery Suits
Introduction
A Summary Suit is a special type of civil suit filed under Order XXXVII of the Code of Civil Procedure, 1908 (CPC). It allows for a fast-track resolution of cases related to monetary claims, promissory notes, and bills of exchange, without requiring a full trial. This procedure ensures that defendants cannot unnecessarily delay payment unless they have a valid defense.
When Can a Summary Suit Be Filed?
A Summary Suit can be filed in cases related to:
? Bills of Exchange – A written order directing a party to pay a certain amount.
? Promissory Notes – A signed promise to pay a specific sum.
? Written Contracts for Liquidated Debt – Debt amounts clearly specified in writing.
? Bank Loan Defaults – When a borrower fails to repay.
? Cheque Bounce Cases (beyond Section 138 of NI Act) – If a cheque bounces and the debtor still refuses to pay.
Key Features of Summary Suits
???? No Unnecessary Delay
- The defendant does not get an automatic right to defend.
- They must obtain court permission (leave to defend) by proving they have a strong case.
???? Expedited Procedure
- Unlike regular suits, summary suits eliminate lengthy hearings and are disposed of quickly.
???? Limited Grounds for Defense
- The defendant must prove a substantial dispute exists to be allowed to defend.
- Frivolous defenses are rejected immediately.
Procedure for Filing a Summary Suit
Step 1: Filing the Suit
- The plaintiff (creditor) files a suit under Order XXXVII of CPC in a civil court having jurisdiction.
- The case must be filed in a High Court, District Court, or Civil Court depending on the amount involved.
Step 2: Issuance of Summons
- The court issues summons to the defendant (debtor) within 10 days.
- The summons clearly states that the case is filed as a summary suit.
Step 3: Defendant’s Response
- The defendant cannot file a written statement immediately.
- They must first apply for "leave to defend" within 10 days by proving they have a valid defense.
Step 4: Court’s Decision on Leave to Defend
- If the court finds that the defendant has a valid legal defense, it allows them to fight the case.
- If not, the court passes judgment immediately in favor of the plaintiff.
Step 5: Execution of Judgment
- If the plaintiff wins, they can immediately proceed with recovery actions like:
- Seizing the debtor’s assets
- Attaching bank accounts
- Court-directed installment payments
Important Case Laws on Summary Suits
1. Mechelec Engineers v. Basic Equipment Corporation (1977)
- Judgment: If the defendant shows a genuine dispute, the court must allow them to defend.
2. Raj Duggal v. Ramesh Kumar (1990)
- Judgment: A mere denial of debt is not a valid defense. The defendant must show concrete reasons.
3. IDBI Trusteeship v. Hubtown Ltd. (2016)
- Judgment: If there is no substantial defense, the court should not delay the case and pass a decree quickly.
Real-Life Summary Suit Cases We Solved
1. Unpaid Business Invoice Case
- Case: A company did not pay ?1.5 crore to a supplier despite multiple reminders.
- Outcome: Summary suit filed; court ruled in favor of the supplier in 4 months.
2. Bank Loan Default
- Case: A borrower failed to repay a ?3 crore business loan.
- Outcome: The bank filed a summary suit, and the court ordered asset seizure for recovery.
3. Unpaid Rent Dispute
- Case: A tenant owed ?50 lakh in unpaid rent but refused to vacate.
- Outcome: The landlord filed a summary suit, and the tenant was evicted with recovery proceedings initiated.
Conclusion
Summary Suits are a powerful legal tool for creditors, banks, landlords, and businesses to recover money quickly. Since the defendant has limited scope for defense, it prevents unnecessary delays and ensures faster justice.
? Total Cases Solved: 32+
