Bombay High Court Grants Ex Parte Decree in Summary Suit for Recovery of Liquidated Sum Under Written Contract. Plaintiff Entitled to Decree Under Order XXXVII Rule 2(3) CPC as Defendant Failed to Appear Despite Service.

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

The plaintiff, M/s. NRP Entertainment & Network Pvt. Ltd., filed a summary suit under Order XXXVII of the Code of Civil Procedure, 1908, against the defendant, M/s. Mannan Films & Others, seeking recovery of a liquidated sum of Rs. 1,16,80,000 with interest at 21% per annum. The claim was based on a written contract/agreement dated 23rd May, 2012, executed between the plaintiff and defendant No. 1. The plaintiff served the writ of summons on defendant No. 1 through the Sheriff of Mumbai by Registered Post A.D., which was received on 18th July, 2014. Despite service, defendant No. 1 failed to appear either in person or through an advocate. The court noted that no relief was sought against defendant Nos. 2 to 5. The plaintiff filed original documents which were taken on record. The court, relying on sub-rule (3) of Rule 2 of Order XXXVII, held that the plaintiff was forthwith entitled to an ex parte decree. The court decreed that defendant No. 1 pay Rs. 1,16,80,000 with interest at 18% per annum from the date of filing of the suit till realization, along with costs of the suit. The plaintiff was also entitled to refund of court fee as per rules. The suit was disposed of accordingly.

Headnote

A) Civil Procedure - Summary Suit - Ex Parte Decree - Order XXXVII Rule 2(3) CPC, 1908 - Plaintiff filed summary suit for recovery of Rs. 1,16,80,000 based on a written contract dated 23rd May, 2012 - Defendant served but failed to appear - Court held that plaintiff is forthwith entitled to ex parte decree under sub-rule (3) of Rule 2 of Order XXXVII - Decree granted with interest at 18% per annum from date of suit till realization (Paras 1-6).

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Issue of Consideration

Whether the plaintiff is entitled to an ex parte decree under Order XXXVII of the Code of Civil Procedure, 1908, when the defendant fails to appear despite service of summons.

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Final Decision

The court decreed that Defendant No. 1 pay the plaintiff Rs. 1,16,80,000 with interest at 18% per annum from the date of filing of the suit till realization, along with costs of the suit. The plaintiff is entitled to refund of court fee as per rules. The suit is disposed of.

Law Points

  • Summary suit under Order XXXVII CPC
  • ex parte decree for liquidated sum
  • written contract
  • service of summons
  • failure to appear
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Case Details

2014 LawText (BOM) (09) 171

Summary Suit No. 495 of 2013

2014-09-30

S.J. Kathawalla

2014:BHC-OS:10465

Mr. Anoop Sharma for the Plaintiff

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Nature of Litigation

Summary suit for recovery of liquidated sum of money based on a written contract.

Remedy Sought

Plaintiff sought a decree against Defendant No. 1 for Rs. 1,16,80,000 with interest at 21% per annum from date of suit till realization.

Filing Reason

Defendant No. 1 failed and neglected to repay the amount agreed under the written contract dated 23rd May, 2012.

Issues

Whether the plaintiff is entitled to an ex parte decree under Order XXXVII CPC when the defendant fails to appear after service.

Submissions/Arguments

Plaintiff submitted that the defendant was served but failed to appear, and the suit was placed for ex parte decree.

Ratio Decidendi

Under sub-rule (3) of Rule 2 of Order XXXVII of the Code of Civil Procedure, 1908, where the defendant fails to appear despite service of summons, the plaintiff is forthwith entitled to an ex parte decree for the liquidated sum claimed.

Judgment Excerpts

The Plaintiff has filed the above Suit as a Summary Suit under the provisions of order XXXVII of the Code of Civil Procedure against the Defendant No.1 for recovery of a liquidated sum of money being due and payable by the Defendant No. 1 to the Plaintiff in respect of a written contract/agreement dated 23rd May, 2012. In view of subRule (3) of Rule 2 of order XXXVII of the Code of Civil Procedure, 1908, the Plaintiff is forthwith entitled to a decree against the Defendant No.1 ex parte.

Procedural History

Plaintiff filed Summary Suit No. 495 of 2013. Writ of summons served on Defendant No. 1 on 18th July, 2014. Defendant failed to appear. Suit placed for ex parte decree. Court passed ex parte decree on 30th September, 2014.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXXVII, Rule 2(3)
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