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DELHI HIGH COURT
Jayant Nath, J.
Arun Kumar —Petitioner
versus
Yogender Singh Panwah @ Sonu —Respondent
CM (M) No.1377 of 2016 and
CM Nos.47823 and 47824 of 2016
Decided on 18.1.2017

Counsel for the Parties:
For the Petitioner:P.D. Gupta and Abhishek Gupta, Advocates
For the Respondents: None

IMPORTANT POINT
All suits which .are for money recoverable on a written contract or on a bill of exchange, hundies or a promissory note are subject-matter of a summary suit under Order 37, C.P.C.

Headnote:Civil Procedure Code, 1908—Order 37 Rule 1—Money suit—Dishonour of cheques— All suits which .are for money recoverable on a written contract or on a bill of exchange, hundies or a promissory note are subject-matter of a summary suit under Order 37, C.P.C.—Petitioner had filed a criminal complaint under Section 138 of Negotiable Instruments Act which is pending adjudication in Trial Court—As per the plaint, defendant has defaulted and not paid loan amount with accrued interest and hence a cause of action has arisen—Whether petitioner ultimately succeeds is not relevant at this stage—Present suit would be covered by definition of a summary suit—Impugned order to that extent modified—Suit be registered as a summary suit under Order 37, C.P.C. and summons be issued accordingly. (Paras 4 and 5)

       Result: Petition disposed of.

       

JUDGMENT

CM No.47824 of 2016 (exemption):

Allowed subject to all just exceptions.

CM(M) No.1377 of 2016 and CM No.47823 of 2016 (stay):

Jayant Nath, J.—The petitioner is aggrieved by order dated 6.12.2016 by which a suit filed by the petitioner was not treated as a suit under Order XXXVII. C.P.C.

The learned Senior Counsel appearing for the petitioner has taken me through the plaint and has submitted that on 4.2.2015 the respondent towards the repayment of the loan amount advanced to him by the plain- tiff alongwith interest accrued thereon had tendered two cheques of Rs. 4 lac and 6 lac. respectively. These cheques when presented, the same were returned unpaid with the remarks “Account Closed”. He submits that as the cheques have been given, the suit is covered under Order XXXVII of the C.P.C.

2. A perusal of the impugned order shows that there is no reference to the said cheques. The Trial Court has merely come to the conclusion that there is no proof of disbursement of the amount and hence declined to consider the suit under Order XXXVII of the C.P.C.

3. Order XXXVII, Rules 1(2) and 2, C.P.C. reads as follows:

“37. (1) Courts and classes of suits to which the Order is to apply.

(2) Subject to the provisions of sub-rule (1), the order applies to the following classes of Suits. namely:

(a) suit upon bills of exchange, hundies and promissory notes;

(b) suits in which the plaintiff seeks only to recover a debt or liquidated demand in money payable by the defendant, with or without interest arising-

(i) on a written contract; or

(ii) on an enactment, where the sum sought to be recovered is a fixed sum of money or in the nature of a debt (other than a penalty); or

(iii) on a guarantee, where the claim against the principal is in respect of a debt or liquidated demand only.

(2) Institution of summary Suits.-(1) A suit, to which this Order applies. May, it the plaintiff desires to proceed hereunder, be instituted by presenting a plaint which shall contain.-

(a) a specific averment to the effect that the suit is filed under this Order;

(b) that no relief, which does not fall within the ambit of this rule, has been claimed in the plaint; and

(c) the following inscription, immediately below the number of the• suit in the title of the suit, namely:

(Under Order XXXVII of the Code of Civil Procedure, 1908)”.

(2) The summons of the suit shall be in form No.4 in Appendix B or in such other Form as may, from time to time, be prescribed.

(3) The defendant shall not defend the suit referred to in sub-rule (1) unless he enters an appearance and in default of his entering an appearance the allegations in the plaint shall be deemed to he admitted and the plaintiff shall be entitled to a decree for any sum, not exceeding the sum mentioned in the summons, together with interest at the rate specified, if any, up to the date of the decree and such sum for costs as may be determined by the High Court from time to time by rules made in that behalf and such decree may be executed forthwith.”

4. Hence, all the suits which .are for money recoverable on a written contract or on a bill of exchange, hundies or a promissory note are subject-matter of a summary suit under Order XXXVII. C.P.C. Perusal of the plaint shows that it is the case of the petitioner that the respondent to- wards repayment of the loan amount issued two cheques from his bank account” which were duly signed by him. The said cheques were presented by the petitioner through its banker and the same were returned unpaid with the remarks “Account Closed”. Further, the petitioner had filed a criminal complaint under section 138 of The Negotiable Instruments Act which is pending adjudication in the Trial Court. In the said case, bailable warrants were issued against the respondent but he has still not appeared till date on account of which the present suit is being filed.

5. For the purpose of consideration as to whether the suit would be under Order XXXVII only the av



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