Case Note & Summary
The plaintiff, Gini Tex Private Limited, a manufacturer and supplier of cotton and linen fabrics, filed a Commercial Summary Suit under Order XXXVII of the Code of Civil Procedure, 1908 (CPC) against the defendants, Soham Fashion and its partners, seeking recovery of Rs. 45,18,600/- along with interest at 24% per annum from 31st March 2019. The claim was based on goods sold and delivered to the defendants, who had a credit period of 35 days. The defendants issued cheques towards payment, which were dishonored upon presentation. The plaintiff served a statutory notice under the Negotiable Instruments Act, 1881, but the defendants failed to pay. The defendants entered appearance but did not file any affidavit in support of their defense or seek leave to defend. The court noted that the defendants' defense was vague and lacked particulars, amounting to a sham and moonshine defense. The court held that no triable issues were raised and that the plaintiff was entitled to summary judgment. The court decreed the suit in favor of the plaintiff for Rs. 45,18,600/- with interest at 18% per annum from the date of the suit until realization, along with costs.
Headnote
A) Civil Procedure - Summary Suit - Order XXXVII CPC - Leave to Defend - The court examined whether the defendants raised a triable issue or a sham defense to resist summary judgment. Held that the defense must be bona fide and raise a real issue; otherwise, judgment may be entered for the plaintiff. (Paras 1-6) B) Commercial Law - Goods Sold and Delivered - Dishonored Cheques - The plaintiff sought recovery of Rs. 45,18,600/- based on goods supplied and cheques issued by defendants which were dishonored. The court found the claim supported by invoices, delivery challans, and cheque return memos, and the defendants failed to provide any credible defense. (Paras 1-4) C) Interest - Contractual Interest - 24% per annum - The plaintiff claimed interest at 24% per annum from 31st March 2019. The court granted interest at 18% per annum from the date of the suit until realization, as the contractual rate was not specifically proved. (Para 6)
Issue of Consideration
Whether the defendants have a valid defense or triable issue entitling them to leave to defend the summary suit under Order XXXVII CPC.
Final Decision
The suit is decreed in favor of the plaintiff for Rs. 45,18,600/- with interest at 18% per annum from the date of the suit until realization, along with costs.
Law Points
- Summary judgment under Order XXXVII CPC
- Sham and moonshine defense
- Triable issue
- Commercial dispute
- Goods sold and delivered
- Dishonored cheques
- Interest on delayed payment
