Suit for Recovery of Money Under Order XXXVII of CPC, 1908

Table of contents

1. Frequently asked questions 2. Sample draft

Frequently asked questions

Q. What is the difference between a summary suit under Order XXXVII CPC and an ordinary civil suit?

A: A summary suit under Order XXXVII CPC is a fast-track procedure where the Defendant can only defend the suit if they obtain permission from the court, whereas an ordinary civil suit allows the Defendant to file a written statement and contest the case fully.

Q. What are the essential conditions for filing a suit under Order XXXVII of the CPC?

A: A suit under Order XXXVII can be filed only for the recovery of a liquidated amount based on a written contract, promissory note, bill of exchange, or a guarantee relating to a debt or loan.

Q: What legal remedies are available to a Plaintiff if a cheque is dishonored?

A: The Plaintiff can file a case under Section 138 of the Negotiable Instruments Act, 1881, issue a legal notice demanding payment, and also initiate a civil recovery suit under Order XXXVII of CPC.

Q: What is the limitation period for filing a suit under Order XXXVII of CPC?

A: The limitation period for filing a summary suit for money recovery is three years from the date the debt becomes due, as per the Limitation Act, 1963.

Q. What are the possible defenses available to a Defendant in a summary suit?

A: The Defendant may argue that (i) there is no written contract, (ii) the claim is time-barred, (iii) the cheque was issued under coercion, fraud, or misrepresentation, or (iv) the Plaintiff has already received payment.

Q: What is meant by ‘pendent lite’ interest?

A: ‘Pendent lite’ interest refers to the interest awarded on the principal amount from the date of filing the suit until the final judgment is passed by the court.

Q: How does a legal notice strengthen a Plaintiff’s case in a civil recovery suit?

A: A legal notice establishes a formal demand for payment, serves as pre-litigation evidence, and demonstrates that the Defendant was given a fair opportunity to settle the dispute before the case was filed.

Q: What court fees are applicable for filing a recovery suit?

A: The court fees depend on the amount claimed in the suit and vary according to state laws under the Court Fees Act, 1870. The Plaintiff must pay the appropriate fee for the suit to be admitted.

Q: Can a summary suit under Order XXXVII be converted into a regular suit?

A: Yes, if the court grants unconditional leave to defend to the Defendant, the case proceeds as a regular civil suit instead of a summary suit.

Sample draft

IN THE MATTER OF:

M/s ABC Pvt. Ltd.,
A Company registered under the Companies Act,
Having its registered office located in New Delhi.

VERSUS

SUIT FOR RECOVERY OF RS. 4,19,200/- (Four Lakh Nineteen Thousand Two Hundred Only) UNDER
ORDER XXXVII OF THE CODE OF CIVIL PROCEDURE, 1908

MOST RESPECTFULLY SUBMITTED:

1. The Plaintiff is a registered company under the Companies Act, having its headquarters at B-40, Safdarjung Enclave, New Delhi. Mr. P., the Executive Director of the Plaintiff company, is the authorized representative legally entitled to sign and verify the plaint, vakalatnama, and to initiate legal proceedings on behalf of the Plaintiff.
   
   
2. The Plaintiff company is engaged in the business of construction, engineering, and design. It has earned a distinguished reputation internationally in the construction sector.
   
   
3. The Defendant is a registered company under the Companies Act, with its official registered address in Chandigarh. However, its administrative office is located in Delhi, thereby placing it within the jurisdiction of this Hon'ble Court.
   
   
4. In the year 2000, the Defendant approached the Plaintiff for the construction of a building for their paper mill situated in Chandigarh. Consequently, the Plaintiff undertook the construction and delivered possession of the completed structure to the Defendant in December 2013.
   
   
5. On April 4, 2014, the Plaintiff issued a final invoice amounting to Rs. 4,19,200/- for the construction work completed at the Defendant’s paper mill in Chandigarh. The Defendant, in response, issued Cheque No. 213456, dated April 18, 2014, drawn on Punjab National Bank, Shahdara, Delhi. However, upon presentation, the cheque was dishonored.
   
   
6. The Plaintiff immediately notified the Defendant regarding the cheque's dishonor and demanded payment of the outstanding amount, along with interest at a rate of 18% per annum. Despite multiple reminders and requests, the Defendant failed to fulfill its payment obligation.
   
   
7. As a result, the Plaintiff served a legal notice dated April 6, 2015, requiring the Defendant to settle the outstanding dues amounting to Rs. 1,39,492/-, along with an interest rate of 18% per annum effective from April 4, 2014, until full payment. Despite receiving the notice, the Defendant did not comply with the demand.
   
   
8. The Defendant is, therefore, legally obligated to pay Rs. 4,19,200/- along with 18% interest per annum from the date of the Plaintiff’s invoice. The Plaintiff is specifically claiming interest from April 18, 2014, until the date of filing this suit at the same interest rate.
   
   
9. The cause of action for the Plaintiff arose initially in 2000 when the Defendant engaged the Plaintiff for construction work. It further arose in December 2013 when the building was completed and handed over, on April 4, 2014, when the Plaintiff raised the final invoice, and on all subsequent dates when the Plaintiff made payment requests that were ignored. The cause of action continues to be valid as the Defendant has yet to clear the outstanding amount despite repeated oral and written communications.
   
   
10. This suit falls within the legally stipulated period of limitation.
    
    
11. This Hon’ble Court holds jurisdiction to hear this matter as a substantial portion of the cause of action arose in Delhi. The contract for the paper mill’s construction was executed in Delhi, all prior payments were made in Delhi, and the pending amount was also meant to be settled in Delhi. Additionally, the Defendant's administrative office is located in Delhi, where they conduct their operations for financial gain.
    
    
12. The valuation of this suit, for the purpose of court fees and jurisdiction, stands at Rs. ---------, with a court fee of Rs. ___________ accordingly paid.
    
    
13. The present suit is being filed under Order XXXVII of the Code of Civil Procedure, with no relief sought that falls outside the scope of this provision.

PRAYER:

It is, therefore, respectfully requested that this Hon’ble Court be pleased to:

1. Grant a decree in favor of the Plaintiff, directing the Defendant to pay Rs. 4,19,200/- (Four Lakh Nineteen Thousand Two Hundred Only), along with interest at a rate of 18% per annum from April 18, 2014, until the date of filing this suit;
   
   
2. Award pendent lite and future interest at the rate of 18% per annum on the aforesaid amount until complete realization of the dues;
   
   
3. Direct the Defendant to bear the costs incurred for this suit in favor of the Plaintiff;
   
   
4. Pass any other appropriate order(s) as deemed fit in the given circumstances of the case.

Plaintiff

Through

Advocate

Place:

Date:

VERIFICATION:

Verified at Delhi on this ____ day of January 20… that the contents of paragraphs 1 to 8 are true to my knowledge based on the Plaintiff’s business records maintained in the ordinary course. The details in paragraphs 9 to 13 are true as per information received and considered reliable. The final paragraph is a humble plea to this Hon’ble Court.

Plaintiff

[NOTE: This plaint must be supported by an affidavit.]