Case Note & Summary
The plaintiff, Chandur Moriani, filed a summary suit under Order XXXVII of the Code of Civil Procedure, 1908, against the defendant, Vinod Gada, for recovery of the price of goods sold and delivered. The plaintiff relied on various invoices and delivery challans, the originals of which were produced in court. A notice of demand was issued by the plaintiff's advocate, to which the defendant's advocate replied alleging that the goods were defective. The plaintiff filed a summons for judgment, which was served on the defendant on 8 June 2010. The defendant did not file any reply to the summons for judgment. The court noted that under clause (a) of sub-rule 6 of Rule 3 of Order XXXVII CPC, the plaintiff was entitled to judgment as there was no reply filed. The plaintiff claimed interest at 18% per annum based on a clause in the invoices, but the court, considering the facts, reduced the interest rate to 12% per annum from the date of filing of the suit till payment or realization. The court made the summons for judgment absolute with the modified interest rate and also directed that the plaintiff would be entitled to refund of court fees, if any, in accordance with rules.
Headnote
A) Civil Procedure - Summary Suit - Order XXXVII Rule 3(6)(a) CPC - Default Judgment - Where the defendant fails to file a reply to the summons for judgment, the court may pass judgment for the plaintiff if the documents on record support the claim - The court held that the plaintiff was entitled to judgment as the defendant did not file any reply despite service of summons for judgment (Paras 1-3). B) Interest - Contractual Interest - Reduction by Court - The plaintiff claimed interest at 18% per annum based on invoice terms, but the court reduced it to 12% per annum from the date of suit till payment, considering the facts of the case (Paras 4-5).
Issue of Consideration
Whether the plaintiff is entitled to a summary judgment under Order XXXVII Rule 3(6)(a) CPC when the defendant fails to file a reply to the summons for judgment, and what rate of interest should be awarded.
Final Decision
Summons for judgment made absolute with modification that interest on the sum of Rs.1,45,061/- will be payable at the rate of 12% per annum from the date of filing of the suit till payment or realization. Plaintiff entitled to refund of court fees, if any, in accordance with rules.
Law Points
- Summary suit
- Order XXXVII CPC
- Summons for judgment
- Default in filing reply
- Entitlement to judgment
- Interest rate reduction
