Bombay High Court Dismisses Appeal by Official Liquidator Against Summary Decree for Non-Filing of Written Statement. Failure to Raise Defence Despite Leave to Defend Granted Under Order 37 CPC Leads to Dismissal of Appeal.

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

The respondent, Prabha P. Shenai, instituted a summary suit under Order 37 of the Code of Civil Procedure, 1908 (CPC) against M/s. Crown Maritime Company (India) Pvt. Ltd. (the appellant) for recovery of Rs.38,73,530.43 with interest. The respondent claimed that on 24 September 1996, the appellant sought a quotation for supply of M.S. Flanges and Bolt Nuts, and after the respondent furnished a quotation on 27 September 1996, the appellant placed an order on 28 September 1996. The respondent supplied the material on 5 October 1996, and the invoice was accepted by the appellant. A notice of demand was issued on 29 June 1998, and the suit was filed on 17 July 1998. The appellant was granted unconditional leave to defend on 11 August 2003, but failed to file a written statement. On 5 February 2009, the learned Single Judge decreed the suit as prayed, noting that the appellant had knowledge of the proceedings but did not file a written statement. The appellant, now represented by the Official Liquidator as the company was in liquidation, appealed against the decree. The Division Bench heard the appeal on 24 September 2013. The appellant's advocate was absent, and no one appeared for the appellant. The court noted that the appellant had not raised any defence and the appeal was devoid of merit. The appeal was dismissed for non-prosecution, and the decree of the learned Single Judge was upheld.

Headnote

A) Civil Procedure - Summary Suit - Order 37 CPC - Decree upon failure to file written statement - The respondent-plaintiff filed a summary suit for recovery of money. The appellant-defendant was granted unconditional leave to defend but failed to file a written statement. The learned Single Judge decreed the suit as prayed. On appeal, the Division Bench held that the decree was justified as the appellant had not raised any defence. (Paras 1-5)

B) Civil Procedure - Appeal - Dismissal for want of prosecution - The appeal was dismissed for non-prosecution on 24 September 2013 as the appellant's advocate was absent and no one appeared. The court noted that the appellant had not raised any defence and the appeal was devoid of merit. (Para 5)

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Issue of Consideration

Whether the learned Single Judge was justified in decreeing the summary suit under Order 37 CPC when the defendant failed to file a written statement despite being granted unconditional leave to defend.

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Final Decision

The appeal is dismissed for non-prosecution. The decree of the learned Single Judge dated 5 February 2009 is upheld.

Law Points

  • Summary suit under Order 37 CPC
  • decree upon failure to file written statement
  • leave to defend granted but not availed
  • no defence raised
  • appeal against decree dismissed
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Case Details

2013 LawText (BOM) (09) 70

APPEAL NO. 245 OF 2013 IN SUMMARY SUIT NO. 3179 OF 1998

2013-09-24

Dr. D.Y. Chandrachud, M.S. Sonak

Pankaj Vijayan i/b. Intra Legal for the appellant, Prakash R. Shenai, Constituted Attorney of respondent in person

The Official Liquidator as the Liquidator of M/s. Crown Maritime Company (India) Pvt. Ltd.

Prabha P. Shenai

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Nature of Litigation

Appeal against decree in summary suit for recovery of money.

Remedy Sought

The appellant (Official Liquidator) sought to set aside the decree passed by the learned Single Judge in the summary suit.

Filing Reason

The respondent filed a summary suit for recovery of Rs.38,73,530.43 with interest for supply of goods. The appellant was granted unconditional leave to defend but failed to file a written statement, leading to the decree.

Previous Decisions

The learned Single Judge decreed the suit on 5 February 2009. The appellant filed this appeal against that decree.

Issues

Whether the decree passed by the learned Single Judge under Order 37 CPC was justified when the appellant failed to file a written statement despite being granted unconditional leave to defend.

Submissions/Arguments

The appellant did not appear or make submissions; the appeal was dismissed for non-prosecution.

Ratio Decidendi

In a summary suit under Order 37 CPC, if the defendant is granted unconditional leave to defend but fails to file a written statement, the court may decree the suit as prayed. The appeal against such a decree is liable to be dismissed if no defence is raised.

Judgment Excerpts

This appeal arises from the judgment and order of a learned Single Judge dated 5 February 2009 by which a summary suit instituted under Order 37 of the Code of Civil Procedure, 1908 (C.P.C.) has been decreed as prayed. The learned Single Judge on this basis observed as follows: ... The appeal is dismissed for non-prosecution.

Procedural History

The respondent filed Summary Suit No. 3179 of 1998 on 17 July 1998. On 11 August 2003, unconditional leave to defend was granted to the appellant. The appellant failed to file a written statement. On 5 February 2009, the learned Single Judge decreed the suit. The appellant filed Appeal No. 245 of 2013 against that decree. The appeal was heard on 24 September 2013 and dismissed for non-prosecution.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 37
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High Court Bombay High Court Dismisses Appeal by Official Liquidator Against Summary Decree for Non-Filing of Written Statement. Failure to Raise Defence Despite Leave to Defend Granted Under Order 37 CPC Leads to Dismissal of Appeal.
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