Summary Suit

TANMOY MUKHERJI INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherji

Advocate

Summary Suit-

Tanmoy Mukherji

Advocate

A summary suit is a special and speedy procedure under Section 37 of CPC for recovery of money in specific types of cases.

→It prevents the defendant from defending the suit unless he obtains leave (permission) from the court.

Nature of Summary Suit-

As observed in Mechelec Engineers and Manufacturer's v/s Basic Equipment Corporation, leave to defend is granted only when substantial defence is shown.

It is often used in negotiable instrument under the Negotiable Instruments Act, 1881.

Object of Summary Suit-

Summary suits were introduced to strength commercial justice and ensures speedy enforcement of monetary obligations. The objects are stated below:

i) to ensure speedy justice;

ii) to prevent abuse of judicial process;

iii) to promote commercial confidence;

iv) to secure recovery of liquidated debts;

v) to reduce court backlog.

vi) to balance speed with natural justice;

vii) to discourage dishonest debtors;

viii) to provide procedural efficiency without creating new rights.

Scope of Summary Suit-

The scope of summary Suits determines the extent, applicability, jurisdiction, subject matter, coverage and procedural limits of Order. 37 CPC.

It defines where the summary procedure can be invoked and where it cannot.

Scope as to courts:

Scope as to Subject matter:

These instruments are primarily governed by the Negotiable Instruments Act, 1881.

The Key requirement is that the claim must be for a liquidated and definite amount.

Scope as to relief-

Only money recovery suits are covered.

Hence, the scope is narrow and specific.

scope regarding defence-

The defendant's right to defend is restricted:

→No automatic written statement.

→No seek to leave to defend.

→Must disclose substantial defence.

If defence raises, triable issues → leave granted.

If defence is sham → leave refused.

Reference Case

Mechelec Engineers and Manufactures v/s Basic Equipment Corporation.

In IDBI Trusteeship Services Ltd. v/s Hubloon Ltd, it was held that procedural scope includes judicial scrutiny of defence.

Territorial and Pecuniary Scope:

Order. 37 does not override general jurisdiction rules under CPC.

Scope after 1976 Amendment:

Originally limited to Negotiable Instruments.

Scope in Commercial Litigation:

With the growth of commercial disputes, Summary Suits are widely used in:

→Loan recovery

→Banking Claims

→Corporate guarantees

→Trade debts

Thus, its practical scope is largely commercial.

Limitations on Scope:

In such cases court may treat as ordinary suit.

Procedural Nature of Scope: