Case Note & Summary
The Plaintiff, Oriental Aromatics Limited, filed a summary suit under Order XXXVII of the Code of Civil Procedure, 1908, against the Defendant, Poonam D. Bhatiya, trading as M/s Raj Industries, for recovery of Rs. 1,68,80,866/-. This amount comprised a principal sum of Rs. 1,27,93,674/- and interest at 15% per annum on the invoices for goods sold and delivered between July and August 2019. The Plaintiff alleged that pursuant to oral purchase orders, it supplied Isoborneol Powder and Camphor GF to the Defendant and raised invoices totaling Rs. 1,38,59,631/-. The Defendant made part payments, leaving a balance of Rs. 1,27,93,674/-. After the Defendant entered appearance, the Plaintiff took out a Summons for Judgment, acknowledging a post-suit payment of Rs. 2,10,000/-. The Defendant filed a reply on 5 March 2022, disputing the principal amount and interest rate, and claiming that additional payments of Rs. 1,50,000/- and Rs. 1,00,000/- were not credited. The court considered whether the Defendant had raised triable issues entitling it to leave to defend. The Plaintiff argued that the Defendant had admitted liability in emails and that the defense was moonshine. The Defendant contended that the invoices did not specify an interest rate, that the principal amount was disputed, and that the Plaintiff failed to account for certain payments. The court held that the Defendant had raised triable issues regarding the quantum of principal and interest, and that the defense was not frivolous or vexatious. Accordingly, the court granted unconditional leave to defend, directing the Defendant to file a written statement within four weeks and the suit to proceed as a regular suit.
Headnote
A) Civil Procedure - Summary Suit - Leave to Defend - Order XXXVII Rule 2 of Code of Civil Procedure, 1908 - The court considered whether the Defendant had raised triable issues to warrant leave to defend in a summary suit for recovery of Rs. 1,68,80,866/- for goods sold and delivered. The Defendant disputed the principal amount and interest rate, and claimed that the Plaintiff had not given credit for certain payments. The court found that the Defendant had raised triable issues regarding the quantum of principal amount and interest, and accordingly granted unconditional leave to defend. (Paras 1-15) B) Civil Procedure - Summary Suit - Part Payment - Order XXXVII of Code of Civil Procedure, 1908 - The Plaintiff admitted that the Defendant had paid Rs. 2,10,000/- after filing of the suit, but the Defendant claimed additional payments of Rs. 1,50,000/- and Rs. 1,00,000/- which were not reflected in the Plaintiff's accounts. The court held that this dispute over part payments constituted a triable issue. (Paras 2, 10-12) C) Civil Procedure - Summary Suit - Interest Rate - Order XXXVII of Code of Civil Procedure, 1908 - The Plaintiff claimed interest at 15% per annum, but the Defendant contended that the invoices did not specify any interest rate and that the rate was excessive. The court found that the absence of a specified interest rate in the invoices raised a triable issue. (Paras 1, 13)
Issue of Consideration
Whether the Defendant has raised triable issues entitling them to unconditional leave to defend in a summary suit for recovery of money based on invoices for goods sold and delivered.
Final Decision
The court granted unconditional leave to the Defendant to defend the suit. The Defendant is directed to file a written statement within four weeks from the date of the order. The suit shall proceed as a regular suit.
Law Points
- Summary suit
- leave to defend
- triable issues
- Order XXXVII CPC
- unconditional leave
- conditional leave
- recovery of goods sold and delivered
- interest rate
- principal amount
- part payment
- admission of liability
