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2004 Supreme(Bom) 331

IN THE HIGH COURT OF BOMBAY
Lodha R.M., Vazifdar S.J. Mohta A.V., JJ.
SICOM LTD. others .... Plaintiffs.
Versus
Prashant S. Tanna others.... Defendants.
Advocates appeared :
V.R. Dhond i/b Mehta Laljee Co. in Summons for Judgment No. 936/2001 in Summary Suit No. 285/2001 Summons for Judgment No. 521/2002 in Summary Suit No. 372/2002, for plaintiff.
Ms. Shah with K.D. Shah in Summons for Judgment No. 260/2002 in Summary Suit No. 3763/2001, Summons for Judgment No. 261/2002 in Summary Suit No. 3762/2001 Summons for Judgment No. 329/2002 in Summary Suit No. 3969/2001, for plaintiff.
Ajay Panicker in Summons in Judgment No. 272/2002 in Summary Suit No. 74/2002, Summons for Judgment No. 273/2002 in Summary Suit No. 4331/2001, Summons for Judgment No. 274/2002 in Summary Suit No. 4330/2001 Summons for Judgment No. 275/2002 in Summary Suit No. 4329/2001, for plaintiff.
H.R. Shetty with Ms. S.S. Patra in Summons for Judgment No. 373/2002 in Summary Suit No. 3566/2001, for plaintiff.
Dinshu Saiwala with Ms. K. Kalyaniwala in Summons for Judgment No. 373/2002 in Summary Suit No. 3566/2001, for Bombay Incorporated Law Society.

Headnote:Code of Civil Procedure, 1908 - Order XXXVII, Rule 1 and Order XXIII, Rule 1 and 1(4) - in a summary trial the plaintiff, at any point of time, may abandon or give up any part of the claim unilaterally - what is required to be done for this is simply to make a statement in the court to be recorded by the court - not necessary to make a formal application necessitating cancellation and fresh issuance of summons. 2003 (3) Mh LJ 421; (2003) 6 BCR 810 - Affirmed.

       Code of Civil Procedure, 1908 - Order XXXVII, Rule 1 - suits falling within those enumerated in Order XXXVII, Rule 1 - maintainable as summary suit even though claim not properly quantified or in excess of entitlement. 1998 (1) Mh LJ 793 - Overruled.

       Code of Civil Procedure, 1908 - Order XXXVII, Rule 3 - while granting leave to defend a claim, it is open to the court to split the claim in parts for conditional leave and unconditional leave - in case of conditional leave part, if the conditions are not complied with, defendant shall suffer consequences qua only that part of the claim - part of claim for which unconditional leave was granted would remain unaffected. Appeal no. 1149 of 1985; Appel no. 226 of 1986 - Referred to; 2003 (3) Mh LJ 421; (2003) 6 BCR 810 - Affirmed.

JUDGMENT - VAZIFDAR S.J., J.:---The above summons for judgment appeared before the learned Single Judge who, by a common order dated 22nd July, 2003, opining that they may be more advantageously heard by a larger Bench, placed the matters under Rule 28 of the Bombay High Court (Original Side) Rules, before the Honble Chief Justice for making an appropriate orders for constituting a larger Bench. The Honble Chief Justice by an order dated 14th November, 2003 constituted a larger Bench to which one of us (S.J. Vazifdar, J.) was a party. As the earlier Full Bench was unable to hear the matters, the present Bench was constituted to hear the reference.

2. The earlier Full Bench on 25th November, 2003, framed, for convenience, the following four questions of law :

(i) Whether the provisions of Order XXIII, Rule 1 of the Code of Civil Procedure, 1908 can be invoked while exercising powers under Order XXXVII of the Code of Civil Procedure and deciding a summons for judgment/application for leave to defend a summary suit instituted under Order XXXVII, Rule 1(2) thereof?

(ii) Whether third option of abandoning a part of the claim in a summary suit is available to a plaintiff at the hearing of the summons for judgment or the options set out in two Division Bench judgments of this Court in (M/s. Randerian Singh v. Indian Overseas Bank)1, Appeal No. 1060 of 1986 in Summons for Judgment NO. 307 of 1986 in Summary Suit No. 3212 of 1985 decided on 24th February, 1987 and (Hydraulic and General Engineering v. UCO Bank)2, 1998(1) L.J. 793 are exhaustive?

(iii) Whether the Division Bench decision in (Ajcon Capital Markets Limited v. Maya Rasayan Limited)3, 2003(6) Bom.C.R. 810 granting a third option as aforesaid is in accord with the summary procedure prescribed by Order XXXVII of Code of Civil Procedure?

(iv) When at the hearing of a summons for judgment, the Court finds that a part of the claim in the summary suit, falls outside the scope of Order XXXVII of the Code of Civil Procedure, 1908, what are the options available to the plaintiff and what powers can the Court exercise?

3. The above suits were filed under Order XXXVII of the Code of Civil Procedure, 1908. It appears from the said order of the learned Single Judge that one of the contentions of the defendants in most of the matters was that there was no contract to pay interest and that the rate at which interest was claimed was excessive and not in accordance with the contract. The learned Counsel appearing on behalf of the plaintiff therefore sought, orally to give up a part of the claim which was not within the contract. This application was sought to be supported on behalf of the plaintiff by relying upon a judgment of a Division Bench of this Court in Ajcon Capital Markets Limited v. Maya Rasayan Limited, 2003(6) Bom.C.R. 810.

The application was objected to by the learned Counsel appearing on behalf of the defendants. The objection was founded on two Division Bench judgments of this Court in M/s. Randerian Singh v. Indian Overseas Bank, Appeal No. 1060 of 1986 in Summons for Judgment No. 307 of 1986 in Summary Suit No. 3212 of 1985 decided on 24th February, 1987 and Hydraulic and General Engineering v. UCO Bank, 1998(1) L.J. 793.

4. Order XXXVII of the C.P.C. reads as under:

"1. Courts and classes of suits to which the order is to apply.—(1) This order shall apply to the following Courts, namely :

(a) High Courts, City Civil Courts and Courts of Small Causes; and

(b) other Courts:

Provided that in respect of the Courts referred to in Clause (b), the High Court may, by notification in the Official Gazette, restrict the operation of this order only to such categories of suits as it deems proper, and may also, from time to limit, as the circumstances of the case may require, by subsequent, notification in the Official Gazette, further restrict, enlarge or vary, the categories of suits to be brought under the operation of this order as it deems proper.

(2) Subject to the provisions of sub-r




















































































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