Bombay High Court Grants Summary Decree in Favor of Plaintiff for Recovery of Outstanding Amount for Supply of Ready-Mix Concrete. Court holds that defendant failed to appear despite service, and plaintiff established a prima facie case for summary judgment under Order XXXVII of CPC.

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

The plaintiff, Skyway RMC Plants Pvt. Ltd., instituted a commercial summary suit under Order XXXVII of the Code of Civil Procedure, 1908, for recovery of Rs.1,32,11,053/- from the defendant, Farooq Thim, a sole proprietor of Faith India Construction Company. The claim was based on the supply of ready-mix concrete between July 2014 and May 2015, for which invoices were raised totaling Rs.2,79,86,263/-. The defendant made part payments of Rs.1,81,73,542/-, leaving an outstanding principal of Rs.98,12,721/-. The plaintiff sent a demand letter dated 13 October 2016 via registered post, which was returned unclaimed. The suit was filed for recovery of the principal amount with interest at 24% per annum as per the terms of the invoices. The writ of summons was personally served on the defendant on 1 August 2017, but the defendant failed to appear within the prescribed period. The court considered the plaintiff's submissions and the affidavit of service. The court noted that the defendant did not enter appearance or file a defense. The court held that the plaintiff had made out a prima facie case for summary judgment. The court granted a summary decree in favor of the plaintiff for the principal amount of Rs.98,12,721/- with interest at 12% per annum from the date of the suit until realization, along with costs. The court also directed that the decree be executed in the usual course.

Headnote

A) Civil Procedure - Summary Suit - Order XXXVII CPC - Recovery of Debt - Plaintiff sought recovery of Rs.1,32,11,053/- for supply of ready-mix concrete based on invoices - Defendant failed to appear despite personal service of summons - Court held that plaintiff established a prima facie case and granted summary decree for principal amount of Rs.98,12,721/- with interest at 12% p.a. from date of suit till realization (Paras 1-4).

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Issue of Consideration

Whether the plaintiff is entitled to a summary decree for recovery of the outstanding amount along with interest, given that the defendant failed to appear despite service of summons.

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Final Decision

The court granted a summary decree in favor of the plaintiff for the principal amount of Rs.98,12,721/- with interest at 12% per annum from the date of the suit until realization, along with costs. The decree to be executed in the usual course.

Law Points

  • Summary suit under Order XXXVII CPC
  • Recovery of debt based on invoices
  • Interest on delayed payment
  • Service of summons
  • Non-appearance of defendant
  • Prima facie case for summary decree
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Case Details

2019 LawText (BOM) (11) 62

COMM. SUMMARY SUIT NO. 20 OF 2017

2019-11-29

N. J. JAMADAR, J.

Mr. J. D'Souza, i/b Chirag Sancheti, for the Plaintiff.

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Nature of Litigation

Commercial summary suit for recovery of money based on invoices for supply of goods.

Remedy Sought

Plaintiff sought recovery of Rs.1,32,11,053/- with interest at 24% p.a. on the principal amount of Rs.98,12,721/-.

Filing Reason

Defendant failed to pay the outstanding amount for ready-mix concrete supplied between July 2014 and May 2015.

Issues

Whether the plaintiff is entitled to a summary decree under Order XXXVII CPC when the defendant fails to appear despite service of summons.

Submissions/Arguments

Plaintiff submitted that invoices were raised and accepted by defendant, part payment was made, and balance remained unpaid. Defendant failed to appear despite service.

Ratio Decidendi

In a summary suit under Order XXXVII CPC, if the defendant fails to appear despite valid service, the plaintiff is entitled to a summary decree if a prima facie case is made out based on the plaint and documents.

Judgment Excerpts

This commercial division summary suit is instituted for recovery of an amount of Rs.1,32,11,053/- alongwith interest on the principal amount of Rs.98,12,721/-, at the rate of 24% p.a., on the basis of the invoices raised by the plaintiff against the defendant. Despite the personal service of the writ of summons, the defendant did not tender appearance within the period...

Procedural History

Suit filed in 2017. Writ of summons issued on 26 July 2017, personally served on defendant on 1 August 2017. Affidavit of service filed on 10 August 2017. Defendant failed to appear. Judgment reserved on 26 November 2019 and pronounced on 29 November 2019.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXXVII
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