Bombay High Court Dismisses Summons for Judgment in Summary Suit for Construction Payment — Triable Issues Raised Regarding Existence of Contract and Quantum of Work Done. The court held that denial of contract and disputed bills constitute triable issues entitling defendant to unconditional leave to defend under Order 37 CPC.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The plaintiff, Mohammed Arif Akbar Hussain, filed a summary suit against M/s. A.R. Enterprises and others for recovery of Rs.1,29,00,383/- with interest, claiming the amount was due for construction work carried out under a contract. The plaintiff alleged that the defendants had issued a work order and approved a quotation, and that various running account bills were raised, including a third RAB showing the due amount. The plaintiff also relied on an alleged admission of liability in Suit No. 2771 of 2006 filed by the defendants against others, where the plaintiff was a defendant. The defendants denied the existence of any contract and disputed the bills, arguing that the bills were based on estimation without proof. They also contended that the alleged admission in the other suit could not be used in this summary suit as that suit was pending. The court, after hearing both sides, found that the defendants had raised triable issues, including the denial of a contract and the disputed nature of the bills. The court held that the alleged admission in another pending suit could not be treated as a conclusive admission in this summary suit. Consequently, the court dismissed the Summons for Judgment and granted the defendants unconditional leave to defend the suit.

Headnote

A) Civil Procedure - Summary Suit - Leave to Defend - Order 37 CPC - The court considered whether the defendant had raised triable issues such as denial of contract and disputed bills, entitling them to unconditional leave to defend. Held that the defendant's denial of contract and challenge to bills raised triable issues, and the alleged admission in another pending suit could not be used as conclusive admission in this summary suit. (Paras 1-7)

B) Evidence - Admission in Another Suit - Use in Summary Suit - The court held that an admission made in a pending suit cannot be used as a conclusive admission in a summary suit, as the other suit is yet to be decided and the admission may be explained or withdrawn. (Para 6)

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Issue of Consideration

Whether the plaintiff is entitled to judgment in a summary suit based on alleged contract and admission of liability in another suit, or whether the defendant has raised triable issues entitling them to unconditional leave to defend.

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Final Decision

Summons for Judgment dismissed. Defendants granted unconditional leave to defend the suit.

Law Points

  • Summary suit
  • leave to defend
  • triable issues
  • admission of liability
  • contract existence
  • running account bills
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Case Details

2012 LawText (BOM) (08) 106

Summons for Judgment No. 341 of 2010 in Summary Suit No. 26 of 2009

2012-08-17

R.D. Dhanuka

Mr. Ketan R. Parekh i/by M/s. K.R. Parekh & Co. for the plaintiff, Mr. Ram U. Singh for defendant no. 1

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Nature of Litigation

Summary suit for recovery of money based on contract and alleged admission of liability.

Remedy Sought

Plaintiff seeks judgment against defendants for Rs.1,29,00,383/- with interest and costs.

Filing Reason

Plaintiff claims amount due for construction work carried out under a contract with defendants.

Previous Decisions

Suit No. 2771 of 2006 filed by defendants against others is pending; no previous decisions in this suit.

Issues

Whether the plaintiff is entitled to judgment in a summary suit based on alleged contract and admission of liability in another suit. Whether the defendant has raised triable issues entitling them to unconditional leave to defend.

Submissions/Arguments

Plaintiff: There was a contract, bills were raised and partly paid, and defendants admitted liability in Suit No. 2771 of 2006. Defendants: No contract existed, bills are disputed and without proof, and alleged admission in pending suit cannot be used in this summary suit.

Ratio Decidendi

In a summary suit, if the defendant raises triable issues such as denial of contract and disputed bills, the court should grant unconditional leave to defend. An admission in another pending suit cannot be treated as a conclusive admission in the summary suit.

Judgment Excerpts

By this Summons for Judgment, the Plaintiff seeks that the judgment be entered against the defendant in the sum of Rs.1,29,00,383/- with interest and cost. The defendants have filed affidavit in reply. The learned counsel for the defendants submit ... that there is no contract entered into between the plaintiff and defendants. On the other the learned counsel for the plaintiff submits that ... the defendants never disputed the writing at Exh. A.

Procedural History

Plaintiff filed Summary Suit No. 26 of 2009 for recovery of money. Plaintiff then filed Summons for Judgment No. 341 of 2010 seeking judgment. Defendants filed affidavit in reply. Court heard both sides and dismissed the Summons for Judgment, granting unconditional leave to defend.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 37
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