Introduction for Summary Suit under CPC-
A summary suit is a legal proceeding for the quick and efficient resolution of commercial disputes involving the recovery of a debt or liquidated demand. It is governed by Order 37 of the Code of Civil Procedure (CPC) in India and is designed to provide a speedy remedy to creditors seeking to recover their dues from debtors.
The summary suit procedure is particularly useful for plaintiffs who are looking to avoid lengthy and expensive litigation and want a fast resolution to their disputes. It allows the court to decide a case based solely on the written evidence presented by the parties, without the need for extensive hearings or the examination of witnesses.
However, there are certain conditions and limitations that must be met before a summary suit can be filed. For example, the amount claimed must be a specific sum of money, the debt or demand must arise out of a written contract, and the suit must not involve any triable issues of fact or law. The defendant can only raise limited defenses, and the court will not allow the parties to adduce oral evidence, except in certain circumstances.
In this context, it is important for parties to understand the requirements and limitations of the summary suit procedure before choosing to pursue this option. This will help them make an informed decision about the most appropriate legal strategy to adopt in their particular case.
What is Summary suit under CPC in India?
In India, a summary suit is a type of civil lawsuit that is designed to provide a speedy resolution to a dispute that involves a debt or liquidated demand. Summary suits are governed by the Code of Civil Procedure and are typically used when the plaintiff has a strong and clear-cut case that does not require a detailed examination of evidence.
To file a summary suit, the plaintiff must submit a summary suit application to the court, which must include a statement of the claim and supporting evidence. If the court is satisfied that the claim is suitable for a summary suit, it may issue a summons to the defendant, who must then file a written statement in response.
The court will then examine the evidence and arguments presented by both parties and may render a summary judgment based on the merits of the case. If the plaintiff prevails, the court will issue a decree for the amount of the debt or demand, along with any interest or costs that may be awarded.
Overall, summary suits provide a relatively quick and efficient way for parties to resolve disputes involving debts or liquidated demands in India’s civil court system.
What is the purpose of summary suit?
The purpose of a summary suit is to provide a quick and efficient mechanism for the recovery of a debt or liquidated demand in commercial disputes. The summary suit procedure is designed to expedite the resolution of such disputes, without the need for lengthy and costly legal proceedings. It allows parties to obtain a quick and straightforward remedy, without the need for extensive evidence or oral arguments.
The summary suit procedure is particularly useful for cases where the claimant has a clear and undisputed claim for a specific amount of money, and where the defendant does not have any substantial defense. By limiting the scope of the case to written documents, the procedure aims to streamline the litigation process and reduce the burden on the courts.
Overall, the purpose of a summary suit is to provide a cost-effective and efficient means of resolving commercial disputes involving the recovery of a debt or liquidated demand. It aims to promote the speedy resolution of disputes, without compromising on the principles of justice and fairness.
What cases are tried under summary trial?
In India, summary trials are conducted for certain types of criminal cases that involve minor offenses and have a maximum punishment of up to two years imprisonment. The following types of cases can be tried under summary trial procedure:
- Offences punishable with imprisonment for a term not exceeding two years, such as simple assault, causing minor injuries, or theft of property valued below a certain amount.
- Offences under the Negotiable Instruments Act, 1881, relating to dishonour of cheques, where the amount of the cheque does not exceed a certain limit.
- Cases of disobedience or breach of any order promulgated by a public servant, where the punishment does not exceed two years.
- Offences under section 138 of the Negotiable Instruments Act, 1881, relating to dishonour of cheques for insufficiency of funds, where the cheque amount does not exceed a certain limit.
- Offences under section 174A of the Indian Penal Code, relating to non-appearance in response to a proclamation under section 82 of the Code of Criminal Procedure, 1973.
In summary trials, the procedure is expedited, and the court can dispense with certain formalities and evidence, with the aim of ensuring a quick and efficient dispensation of justice. If the accused is convicted, the court can impose a sentence of up to two years imprisonment or a fine or both, as provided under the law.
What is the difference between a civil suit and a summary suit?
The main difference between a civil suit and a summary suit lies in the procedural mechanism and the nature of the dispute being addressed. Here are some of the key differences:
- Nature of the Dispute: A civil suit can be filed for any type of civil dispute, such as property disputes, contractual disputes, family law disputes, etc. whereas a summary suit can only be filed in cases where the dispute involves a debt or a liquidated demand.
- Speed of Disposition: A summary suit is intended to be a speedy mechanism for resolving disputes, whereas a civil suit can take much longer to resolve, depending on the complexity of the case and the court’s workload.
- Procedure: The procedure for a summary suit is simpler than that for a civil suit. In a summary suit, the court can dispense with certain formalities and evidence, and may render a summary judgment based on the merits of the case. In a civil suit, the parties have a right to a full trial, which involves a detailed examination of the evidence and arguments presented by both sides.
- Appeal: In a civil suit, the parties have a right to appeal the decision to a higher court. However, in a summary suit, the decision of the court is final, and there is no provision for appeal.
In summary, a civil suit is a more comprehensive and formal legal process for resolving civil disputes, while a summary suit is a simplified procedure that is designed to provide a speedy resolution to disputes involving debts or liquidated demands.
What is the difference between summary suit and recovery suit?
A summary suit and a recovery suit are two different types of civil lawsuits that are used to recover outstanding debts. Here are the key differences between the two:
- Nature of the Dispute: A summary suit is a specific type of civil lawsuit that is designed to provide a speedy resolution to disputes involving a debt or liquidated demand. A recovery suit, on the other hand, can be filed for the recovery of any type of debt, including disputed debts.
- Evidence and Procedure: In a summary suit, the court can dispense with certain formalities and evidence and may render a summary judgment based on the merits of the case. However, in a recovery suit, the parties are required to provide evidence to support their claim and the court may conduct a detailed examination of the evidence presented by both sides.
- Timeframe: A summary suit is intended to provide a speedy resolution to disputes, whereas a recovery suit may take longer to resolve, depending on the complexity of the case and the court’s workload.
- Relief Granted: In a summary suit, the court can grant a decree for the amount of the debt or demand, along with any interest or costs that may be awarded. In a recovery suit, the court can grant a decree for the amount of the debt, as well as any interest and costs, and may also grant other reliefs such as damages.
In summary, while both types of lawsuits can be used to recover debts, a summary suit is a specific type of lawsuit that is designed for speedy resolution of disputes involving a debt or liquidated demand, whereas a recovery suit can be filed for any type of debt and may involve a more detailed examination of evidence and procedure.
What is the summary procedure under CPC?
The Code of Civil Procedure (CPC) provides for the summary procedure under Order 37, which is a special provision for the expeditious disposal of certain types of commercial suits. The summary procedure is a simplified mechanism for the recovery of a debt or liquidated demand.
Here are the key features of the summary procedure under CPC:
- Filing of Plaint: A summary suit can be filed only for a debt or liquidated demand that arises out of a written contract, a guarantee, or a bond.
- Ex-Parte Proceedings: The court can pass an ex-parte decree if the defendant fails to appear in court within ten days of receiving the summons.
- Written Statement: The defendant can file a written statement within 10 days of receiving the summons, failing which the court can pass an ex-parte decree.
- Limited Defences: The defendant can raise only certain specified defences, such as non-existence of the debt or demand, or the existence of a prior payment or set-off.
- No Oral Evidence: The court will not allow the parties to adduce oral evidence, except in cases where the court finds it necessary to decide the case.
- No Appeals: There is no provision for an appeal against a decree passed in a summary suit. However, the defendant can apply for a review of the decree if there is a mistake or error apparent on the face of the record.
In summary, the summary procedure under CPC is a special provision for the speedy disposal of certain types of commercial suits, involving debts or liquidated demands arising out of a written contract, a guarantee, or a bond. The procedure is designed to be expeditious and efficient, with limited defences and no provision for oral evidence or appeals.
What is the notice period for a summary suit?
Under Order 37 of the Code of Civil Procedure (CPC), a summary suit can be filed for the recovery of a debt or liquidated demand arising out of a written contract, a guarantee, or a bond. The notice period for a summary suit is determined by the court and may vary depending on the specific circumstances of the case.
Typically, the plaintiff is required to serve a notice of demand to the defendant before filing a summary suit. The notice of demand should specify the amount of the debt or demand and demand payment within a specified period of time. The notice should be sent by registered post with acknowledgement due, or delivered to the defendant personally.
If the defendant fails to comply with the notice of demand, the plaintiff can file a summary suit in the court having jurisdiction over the matter. The court will then issue a summons to the defendant, requiring them to appear in court and file a written statement within a specified period of time, usually within ten days of receiving the summons.
If the defendant fails to appear in court or file a written statement within the specified period, the court may pass an ex-parte decree in favor of the plaintiff. If the defendant appears in court and contests the suit, the court may proceed to hear and decide the case on the merits of the evidence presented by both sides.
In summary, the notice period for a summary suit depends on the specific circumstances of the case and is determined by the court. The plaintiff is typically required to serve a notice of demand to the defendant before filing the summary suit, specifying the amount of the debt or demand and demanding payment within a specified period of time.
What are the conditions for summary suits?
- Debt or Liquidated Demand: A summary suit can be filed only for the recovery of a debt or liquidated demand arising out of a written contract, a guarantee, or a bond.
- Specified Amount: The amount claimed in the summary suit must be a specific sum of money, which is capable of being calculated with certainty.
- Written Contract: The debt or demand must arise out of a written contract, a guarantee, or a bond.
- Notice of Demand: The plaintiff must serve a notice of demand on the defendant, demanding payment of the debt or demand within a specified period of time.
- Time Limit: The suit must be filed within three years from the date on which the debt or demand became due.
- No Triable Issues: The suit must not involve any triable issues of fact or law. The court must be able to decide the case solely on the basis of the evidence presented by the parties.
- Limited Defences: The defendant can raise only certain specified defences, such as non-existence of the debt or demand, or the existence of a prior payment or set-off.
- No Oral Evidence: The court will not allow the parties to adduce oral evidence, except in cases where the court finds it necessary to decide the case.
In summary, a summary suit can be filed only for the recovery of a debt or liquidated demand arising out of a written contract, a guarantee, or a bond, within a specified time limit. The suit must not involve any triable issues of fact or law, and the defendant can raise only limited defences. The court will not allow the parties to adduce oral evidence, except in cases where the court finds it necessary to decide the case.
What is the limitation of summary suit?
Summary suits, as a special procedure for the speedy disposal of certain types of commercial suits involving debts or liquidated demands, have certain limitations, which include:
- Limited Defenses: The defendant can raise only certain specified defenses, such as non-existence of the debt or demand, or the existence of a prior payment or set-off. The defendant cannot raise other defenses that may require a detailed inquiry into the facts or law of the case.
- No Oral Evidence: The court will not allow the parties to adduce oral evidence, except in cases where the court finds it necessary to decide the case. This can be a limitation for parties who may have evidence that cannot be presented through documents.
- No Counterclaim: The defendant cannot file a counterclaim in a summary suit, which limits their ability to seek relief in the same proceeding.
- No Appeal: If the court passes a decree in a summary suit, there is no provision for an appeal against the decree. The only remedy available to the defendant is to file a regular suit.
- Limited Scope: Summary suits can only be filed for the recovery of a debt or liquidated demand arising out of a written contract, a guarantee, or a bond. Other types of disputes or claims cannot be resolved through this procedure.
In summary, while summary suits are a useful tool for the speedy resolution of certain types of disputes, they have limitations that parties should be aware of before choosing to pursue this route.
What are conditions for summary suits converted into regular suit?
Under the Code of Civil Procedure, a summary suit may be converted into a regular suit under certain circumstances. The conditions for such conversion are as follows:
- If the defendant applies to the court within 10 days of receiving the summons for a summary suit, requesting that the suit be converted into a regular suit, the court may allow such conversion.
- If the court is of the opinion that the case involves complicated questions of law or fact, or if it is necessary for the proper disposal of the case, the court may convert a summary suit into a regular suit.
- If the defendant fails to file a written statement within the time allowed, the court may convert the summary suit into a regular suit.
- If the plaintiff fails to prove his case, the court may convert the summary suit into a regular suit.
- If the defendant raises a triable issue which requires the examination of oral evidence, the court may convert the summary suit into a regular suit.
It is important to note that the conversion of a summary suit into a regular suit may result in a longer and more complicated legal process, which may also lead to higher costs for the parties involved. Therefore, parties should carefully consider the implications of seeking such conversion, and seek legal advice before taking any such step.
How much cost you summary suit in India?
The cost of a summary suit in India depends on various factors, such as the amount of the claim, the location of the court, and the fees charged by lawyers and other professionals involved in the case. Some of the costs that are typically incurred in a summary suit include:
- Court fees: The court fees for filing a summary suit depend on the amount of the claim and are prescribed under the Court Fees Act, 1870. The fees vary from state to state and can range from a few hundred rupees to several thousand rupees.
- Legal fees: The fees charged by lawyers for representing a party in a summary suit may vary depending on the complexity of the case, the experience of the lawyer, and other factors. Lawyers may charge a fixed fee or an hourly rate for their services.
- Professional fees: In some cases, parties may need to hire professionals such as accountants or valuers to provide evidence in support of their claim. The fees charged by these professionals may also add to the overall cost of the summary suit.
- Miscellaneous expenses: There may be other miscellaneous expenses such as travel expenses, photocopying fees, and postage charges that may add to the overall cost of the summary suit.
In general, the cost of a summary suit in India can range from a few thousand rupees to several lakhs of rupees, depending on the specific circumstances of the case. It is advisable for parties to seek legal advice and estimate the potential costs before initiating a summary suit.
How to calculate court fee in summary suit?
The court fee for a summary suit in Maharashtra state is calculated based on the amount of the claim being made in the suit. The Maharashtra Court Fees Act, 1959, governs the calculation of court fees in the state.
The following is the general procedure to calculate the court fee for a summary suit in Maharashtra:
- Determine the amount of the claim: The court fee is calculated based on the amount of the claim being made in the summary suit. This amount includes the principal amount claimed, as well as any interest and costs that are being claimed.
- Identify the applicable court fee: The court fee applicable to a summary suit in Maharashtra is governed by Schedule I of the Maharashtra Court Fees Act, 1959. The applicable court fee for a summary suit in Maharashtra is 2% of the amount claimed, subject to a maximum limit of INR 10,000.
- Calculate the court fee: The court fee is calculated by multiplying the amount of the claim by 2% (0.02). The result is then rounded off to the nearest rupee, subject to a maximum limit of INR 10,000.
For example, if the amount of the claim in a summary suit in Maharashtra is INR 5,00,000, the court fee would be calculated as follows:
Court fee = INR 5,00,000 x 0.02 = INR 10,000
Therefore, the court fee for a summary suit in Maharashtra with a claim amount of INR 5,00,000 would be INR 10,000.
It is important to note that the court fee for a summary suit in Maharashtra may also depend on other factors, such as the nature of the claim and the court in which the suit is being filed. Therefore, parties are advised to seek legal advice and consult the applicable court fee rules and schedules before filing a summary suit.
What are the Landmark judgements on Summary suit ?
Summary suit is a legal process in India used to recover a debt or claim which is undisputed and can be proved without a full trial. Here are some landmark judgments related to summary suits in India:
- Hindustan Petroleum Corporation Ltd. v. Pinkcity Midway Petroleums: In this case, the Supreme Court of India held that the summary procedure under Order 37 of the Code of Civil Procedure can be invoked only when there is no triable issue. If there is any triable issue, the court cannot proceed under Order 37.
- United Bank of India v. Naresh Kumar: In this case, the Supreme Court held that the defendant in a summary suit has the right to file a written statement even if the suit is filed under Order 37 of the Code of Civil Procedure.
- Alok Kumar Jain v. State Bank of India: In this case, the Supreme Court held that if the defendant disputes the debt, the summary suit cannot be maintained, and the matter must be decided in a regular suit.
- Standard Chartered Bank v. Andhra Bank Financial Services Ltd: In this case, the Delhi High Court held that the summary procedure can be invoked in cases where the debt arises from a negotiable instrument.
- TATA Sons Ltd. v. Mr. Surendra Kumar Jain: In this case, the Delhi High Court held that if the defendant disputes the claim made by the plaintiff, the summary procedure cannot be used, and the matter must be decided in a regular suit.
These landmark judgments have clarified the scope and limitations of summary suits in India, and have provided guidance on how they should be filed and adjudicated.
Conclusion for Summary Suit under CPC –
In conclusion, a summary suit is a special procedure for the speedy disposal of certain types of commercial suits involving debts or liquidated demands under Order 37 of the Code of Civil Procedure (CPC) in India. This procedure is available to plaintiffs who seek a swift and efficient resolution of their claims without the need for lengthy trials or protracted legal proceedings.
However, summary suits have certain limitations, such as limited defenses, no oral evidence, no counterclaims, and no provision for appeal. It is therefore essential for parties to understand the requirements and limitations of summary suits before choosing to pursue this option.
Overall, a summary suit provides a useful mechanism for the expeditious resolution of straightforward commercial disputes, and parties may find it to be a cost-effective and time-efficient alternative to a regular civil suit.