Case Note & Summary
The plaintiff, a Chartered Accountant, filed a summary suit under Order XXXVII Rule 2 of the Code of Civil Procedure, 1908 against the defendants for recovery of professional fees amounting to Rs. 1,20,48,000/- along with interest at 18% per annum. The defendant No. 1 had appointed the plaintiff as its Chartered Accountant, and the plaintiff rendered services as agreed. The defendants failed to pay the fees despite demands. The suit was filed as a summary suit, and the defendants did not appear or obtain leave to defend. The court, after considering the pleadings and the fact that the defendants had no defense, decreed the suit in favor of the plaintiff for the principal amount with interest at 18% per annum from the date of filing until realization. The court held that the plaintiff was entitled to the decree as the defendants failed to obtain leave to defend under Order XXXVII CPC.
Headnote
A) Civil Procedure - Summary Suit - Order XXXVII Rule 2 CPC - Recovery of Professional Fees - Plaintiff, a Chartered Accountant, rendered services to defendant No. 1 and was entitled to fees of Rs. 1,20,48,000/-. Defendants failed to appear and obtain leave to defend. Court held that the suit being a summary suit, the plaintiff is entitled to a decree as prayed. (Paras 1-5) B) Interest - Contractual Rate - 18% per annum - The agreement between parties provided for interest at 18% per annum on overdue amounts. Court granted interest at the contractual rate from the date of filing till realization. (Para 5)
Issue of Consideration
Whether the plaintiff is entitled to a decree under Order XXXVII Rule 2 of the Code of Civil Procedure, 1908 for recovery of professional fees and interest, given that the defendants failed to obtain leave to defend.
Final Decision
The suit is decreed in favor of the plaintiff for a sum of Rs. 1,20,48,000/- with interest at 18% per annum from the date of filing of the suit till payment and/or realization.
Law Points
- Summary suit under Order XXXVII CPC
- Recovery of professional fees
- Leave to defend
- Chartered Accountant's services
- Interest at 18% per annum
