Case Note & Summary
The plaintiff, M/s. Gini Silk Mills Ltd, a manufacturer and supplier of cotton and linen fabrics, filed a Commercial Summary Suit under Order XXXVII of the Code of Civil Procedure, 1908, against the defendants, Soham Fashion and its partners, seeking recovery of Rs. 2,18,40,204/- along with interest at 24% per annum from 31st March 2019 until realization. The claim was based on goods sold and delivered to the defendants, who had been granted a credit period of 35 days from the date of supply. It was agreed that delay in payment would attract interest at 18% from the 36th day up to 75 days and thereafter at a higher rate. The defendants issued cheques which were dishonoured. The plaintiff filed the suit seeking summary judgment. The defendants applied for unconditional leave to defend. The court, after hearing the plaintiff's counsel, held that the defendants had not raised any triable issues and were not entitled to unconditional leave to defend. Consequently, the court decreed the suit in favour of the plaintiff for the principal amount of Rs. 2,18,40,204/- with interest at 18% per annum from the date of the suit until realization.
Headnote
A) Civil Procedure - Summary Suit - Order XXXVII CPC - Unconditional Leave to Defend - The court considered whether the defendants had raised any triable issues entitling them to unconditional leave to defend. Held that the defendants failed to disclose any substantial defence or triable issues, and thus were not entitled to unconditional leave. (Paras 1-6) B) Commercial Law - Recovery of Price - Goods Sold and Delivered - The plaintiff sought recovery of Rs. 2,18,40,204/- with interest for goods sold and delivered to the defendants. The court found that the plaintiff had made out a prima facie case and granted summary judgment in favour of the plaintiff. (Paras 1-6)
Issue of Consideration
Whether the defendants are entitled to unconditional leave to defend the summary suit under Order XXXVII of the Code of Civil Procedure, 1908.
Final Decision
The suit is decreed in favour of the plaintiff for the principal amount of Rs. 2,18,40,204/- with interest at 18% per annum from the date of the suit until realization. The defendants are not entitled to unconditional leave to defend.
Law Points
- Summary judgment under Order XXXVII CPC
- Unconditional leave to defend
- Triable issues
- Commercial dispute
- Goods sold and delivered
- Cheque dishonour
