IN THE HIGH COURT OF DELHI AT NEW DELHI
Gaurang Kanth, J.
Ayushi Air Express Private Limited & Anr. – Appellants
Versus
Transportation India-3PL – Respondent
RFA 360 of 2023, CM APPL. 22878 of 2023 & 22879 of 2023
Decided On : 12-05-2023
SUMMARY JUDGMENT - CIVIL SUIT - Order XXXVII CPC - The court decreed the suit for recovery filed by the Respondent under Order XXXVII of the Code of Civil Procedure, 1908 based on uncontroverted documents. The Appellants failed to file an application seeking leave to defend, and the court upheld the Impugned Judgment.
Fact of the Case:
The Respondent, a logistics firm, provided services to the Appellants, who failed to clear outstanding dues. The Respondent filed a Suit for recovery under Order XXXVII CPC. The Appellants failed to file an application seeking leave to defend, leading to the decree of the Suit by the Trial Court.
Finding of the Court:
The Court upheld the Impugned Judgment, stating that the requirement of law to serve the defendant with summons for judgment was duly fulfilled, and the objection of the Appellants was hyper-technical and devoid of merit.
Issues: The main issue was whether the Appellants were served with summons for judgment and whether they were entitled to file an application seeking leave to defend.
Ratio Decidendi: The Court found that the requirement of law to serve the defendant with summons for judgment was fulfilled, and the objection of the Appellants was hyper-technical and devoid of merit.
Final Decision: The Impugned Judgment was upheld, and the present Appeal was dismissed, along with all pending applications. No order as to costs was made.
JUDGMENT
Gaurang Kanth, J.
1. The Appellants in the present Appeal are aggrieved by the Impugned Judgment & Decree dated 14.12.2022 ("impugned judgment") passed by the learned ADJ-3, New Delhi District, Patiala House Courts, New Delhi in Civil Suit bearing CS No.408/20 titled as Transportation India 3 PL Vs Aayushi Air Express Pvt. Ltd..
2. The Appellants had failed to file an application seeking leave to defend in the said Suit. The learned Trial Court, accordingly, vide the Impugned Judgment, based on the uncontroverted documents placed on record by the Respondent, decreed the Suit for recovery filed by the Respondent under Order XXXVII of the Code of Civil Procedure, 1908.
3. With consent of the learned counsel for the Appellants, the Appeal is taken up for hearing. Learned counsel for the Appellants state that he had filed complete Trial Court record and consented for the disposal of the present Appeal based on the documents placed on record by him.
BRIEF FACTS RELEVANT FOR THE DISPOSAL OF THE PRESENT APPEAL ARE AS FOLLOWS:
4. The Respondent is a registered partnership firm represented through its partner, engaged in the business of providing logistic services including transportation, warehousing, courier and C&F etc.
5. It is the case of the Respondent that Appellant No.1 is a company incorporated under the Companies Act, represented through its Director, Mr. Sujeet Kumar. Appellant No.2 is the other director of Appellant No.1/Company.
6. The Appellants approached the Respondent for availing its services. Even though there was no written contract between the parties, an arrangement was formulated between the parties and the transactions took place between the parties in terms of the said arrangement. As per the agreed terms, the Appellants were given a credit period of 45 days to clear the payments due to the Respondent.
7. It was the practice between the parties that the Respondent used to raise invoice(s) for the services rendered to the Appellants by the Respondent and the Appellants were to clear the payment in respect of the said invoice(s) within the credit period of 45 days as agreed between the parties. The transaction(s) between the parties continued for a period of approximately eight to ten months. The Appellants cleared/paid some of the invoices raised by the respondent, however, majority of the invoices were left unpaid.
8. According to the Respondent, the Appellants admitted that an amount of Rs.23,52,372.80/- is outstanding to be paid by them towards the unpaid invoices of the Respondent as on 25.01.2020. Thereafter, the Appellants made partial payment of Rs.50,000/- on 05.02.2020 and Rs.1,00,000/- each on 04.06.2020 and 07.07.2020 towards their liability thus reducing the total outstanding amount to Rs.21,02,324.50/-.
9. Despite repeated requests, the Appellants failed to clear the said outstanding amount payable to the Respondent. The Appellants issued two cheques to the Respondent in the month of January 2020 amounting to Rs.5,00,000/- each towards part payment of the said outstanding dues. However, upon presentation, the said cheques were dishonored. The Respondent issued legal notice dated 27.01.2020 calling upon the Appellants to clear the outstanding dues along with interest. The Respondent also initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881, however, the outstanding dues remained unpaid.
10. The Respondent issued another legal notice dated 29.09.2020 calling upon the Appellants to clear the outstanding amount. Despite receipt of the said legal notice, the Appellants failed to clear the outstanding amount payable to the Respondent. Hence, the Respondent filed the Suit for recovery under Order XXXVII CPC.
11. Summons of the Suit were issued to the Appellants and accordingly the Appellants entered their appearance on 12.05.2022. Thereafter, the Respondent filed summons for judgment on 15.07.2022.
12. There were disputes regarding the service of summons for ju
The main legal point established is that the requirement of law to serve the defendant with summons for judgment must be fulfilled, and hyper-technical objections devoid of merit will not affect the ....
Order V Rule 19 of CPC, mandates that before declaring fact that summons have been duly served, it was obligatory for this Court to examine Process Server, on oath, as requisite affidavit has not bee....
The main legal point established in the judgment is that the pursuit of legal remedies must be bona fide, and dilatory tactics may lead to the denial of delay condonation.
Point of Law : Order of the learned Trial Judge rejecting the application for leave to defend on merits, ought to be substituted by an order rejecting that application as premature.
Order XXXVII is not intended to allow parties to extend the scope of Order XXXVII CPC so as to allow filing of the suits when amounts which are claimed in the suit do not directly spring and arise fr....
Due service of summons is essential for a valid judgment. Knowledge of the proceedings cannot be imputed to a party based on a legal notice served at a given address if the summons were not duly serv....
The legal point established is that in cases of service of summons, the burden of proof lies with the party contesting the service, and unrebutted evidence can influence the court's decision.
The appearance of an Advocate and filing of a Vakalatnama by him could not dispense with the requirement of service of summons. The time to file written statement commences only after service of the ....
The main legal point established in the judgment is the significance of proper service of summons as per the requirements of Order V Rule 17 of the Code of Civil Procedure.
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