The summary procedure as specified under order 37 of the Code of Civil Procedure, 1908 applies to suits on negotiable instruments like bills of exchange, promissory notes and hundies. This is to expedite the redressal process and to bar the defendant from stopping the plaintiff from taking any action against him.
It acts like an ingenious solution to help prevent unreasonable obstructions by a defendant who has no tenable defence. It would be beneficial to business as unless the defendant is able to demonstrate that he has a substantial defence, the plaintiff is entitled to a judgement.
Order 37 engineers an appropriate mechanism that ensures that the defendant does not prolong the litigation especially as in commercial matters time is of the essence and helps further the cause of justice.
Recently in Uma Shankar Kamal Narain v. MD Overseas Limited, the Supreme Court upheld previous judgements like Southern Sales and Services v. Sauermilch Design and Handles GMBH, and the Sunil Enterprise v. SBI and reiterated the principles to be adherred to in the case of a leave to defend summary suit relating to the dishonoured. cheques.
Such suits may be instituted by presenting a plaint containing the following essentials:-
- A specific averment to the effect that the suit is filed under this order.
- That no relief which does not fall within the ambit of this rule has been claimed.
- The inscription immediately below the number of the suite in the title of the suit is being established under Order 37 of CPC.
The summary suit must be brought within one year from the date on which the debt becomes due and payable, whereas the period of limitation for ordinary case under negotiable instruments is three years.
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