SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2004 Supreme(Mad) 329

High Court of Judicature at Bombay
THE HONOURABLE MR. JUSTICE R.M. LODHA, THE HONOURABLE MR. JUSTICE S.J. VAZIFDAR & THE HONOURABLE MR. JUSTICE A.V. MOHTA
SICOM Ltd. & Others
Versus
Prashant S. Tanna & Others
Summons for Judgment No.936 of 2001 In Summary Suit No.285 of 2001, With Summons for Judgment No.521 of 2002 In Summary Suit No.372 of 2002
Decided on : 04-03-2004

Advocates Appeared:
For the Petitioners:V.R. Dhond, Ms. Shah, K.D. Shah, Ajay Panicker, H.R. Shetty, S.S. Patra, Dinshu Sailwala, K. Kalyaniwala, Advocates. For the Respondents: --

A Plaintiff in a summary suit is entitled to unilaterally abandon a part of the claim under Order XXIII Rule 1, and a suit would be maintainable as a summary suit even if the claim made therein is not properly quantified or is in excess of what the Plaintiff is entitled to.

Headnote:

Order XXXVII of the C.P.C. - Summary Suit - Abandonment of Claim - Ajcon Capital Markets Limited v. Maya Rasayan Limited - Order XXIII Rule 1 - Harkishore Jain & Sons Pvt. Ltd. v. Central Bank of India & Ors. - Refrigeration & Machinery Corporation v. Dena Bank

Fact of the Case:

The court considered the applicability of Order XXXVII of the Code of Civil Procedure, 1908 to suits filed under the summary procedure. The Plaintiff sought to abandon a part of the claim not within the contract, which was objected to by the Defendants. The court examined the legal provisions and previous judgments to determine the options available to the Plaintiff and the powers of the Court in such cases.

Finding of the Court:

The court found that the Plaintiff was entitled to unilaterally abandon a part of the claim under Order XXIII Rule 1. It held that a suit would be maintainable as a summary suit even if the claim made therein is not properly quantified or is in excess of what the Plaintiff is entitled to. The court also outlined various options available to the Court while passing an order on the summons for judgment.

Issues: The issues involved the applicability of Order XXXVII of the C.P.C. to suits filed under the summary procedure, the Plaintiff's entitlement to abandon a part of the claim, and the options available to the Court in passing an order on the summons for judgment.

Ratio Decidendi: The court held that a Plaintiff in a summary suit is entitled to unilaterally abandon a part of the claim under Order XXIII Rule 1. It also established that a suit would be maintainable as a summary suit even if the claim made therein is not properly quantified or is in excess of what the Plaintiff is entitled to. The court outlined various options available to the Court while passing an order on the summons for judgment.

Final Decision: The court overruled previous judgments and provided a comprehensive summary of the legal principles governing the abandonment of claim in summary suits and the options available to the Court in passing an order on the summons for judgment.

Judgment :-

S.J. Vazifdar, J.

1. 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 Hon'ble Chief Justice for making an appropriate orders for constituting a larger bench. The Hon'ble 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 her 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 and Hydraulic and General Engineering v. UCO Bank are exhaustive?

iii) Whether the Division Bench decision in Ajcon Capital Markets Limited v. Maya Rasayan Limited 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 B.C.R., page 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 time, 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-rule (1), the Order applies to the following classes of suits, namely:-

(a) suits upon bills of exchange, hundies and promissory notes:

(b) suits in which the plaintiff se





































































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top