Recovery of Money Introduction:-
Order 37 of the code of Civil Procedure. 1908, provides for a civil suit (summary suit) or civil procedure (summary procedure) for negotiable instruments. A civil suit is a special and fast way of exercising a claim in an efficient way because, in this procedure, Judges pronounce decisions without listening to the defence. Though appears to be violation of the basic principle of Natural Justice, “audi alteram partem” that no one should be convicted without a hearing, this method is only applied in circumstances in which the defendant has no defense.
Constituents of Order 37 CPC:-
Rule 1: Application of Order
Rule 1 of order 37 talks about the courts and types of lawsuits to which Order 37 applies. It states that matter filled under civil process may be brought before a civil judge, an additional district judge, a judge of the high court, or any other court with financial authority.
Rule 1(2) applies to all suits based on bills of exchange, hundies, and promissory notes, or those in which a claimant aims only to revive a debt or liquidated demand in funds payable on a written agreement, an enactment, in which the amount to be retrieved is a fixed amount of money or in the essence of any debt apart from fines, and a guarantee with regard to a debt or liquidated demand.
Rule 2: Institution of civil suits upon bills of exchange, etc.
Rule 2(1) basically deals with the plaintiff and the plaint. The plaintiff must provide all the relevant details to the court in his plaint. The plaintiff must provide a particular averment that the suit is being filled in accordance with this order.
Rule 2(2) provides that the summon should be in the format as prescribed on Form no. 4 in Appendix B or in any other form as prescribed time to time.
Rule 2(3) Specifies that if the defendant fails to appear within 10 days of the summons being served upon him, the claim is presumed acknowledged, and the plaintiff is entitled to a decision in an amount not exceeding the sum specified in the summons.
Rule 3: Defendant showing defence on merits to have leave on appear.
Rule 3(1) provides that in a claim in which this order applies, the plaintiff must provide the defendant with the notice to appear and a copy of the plaint. The defendant’s appearance must take place within ten days of the summons being served by him.
Rule 3(2) provides that all summons, notifications, and other legal proceeding must be delivered to the defending at the address provided by him.
Rule 3(3) states that on the day when the defendant appears in the court, he must notify such attendance to the plaintiff’s pleader or the plaintiff personally either by notice delivered or by prepaid letter.
Rule 7: Procedure in civil suits
There is a proper procedure that has to be followed while bringing a suit under Order 37 of the CPC. The procedure followed in a civil suit Is as follows:
- The plaintiff files a complaint.
- Summons are given to the defendant to be present in court. Summons must include the sum of money that is claimed in the litigation as well as a copy of the plaint.
- The defendant must appear within 10 days of receiving the summons.
- If the defendant fails to attend, the claim is presumed acknowledged, and the plaintiffs entitled to a decision in an amount not exceeding the sum specified in the summons.
- If the defendant appears within 10days he must provide notice of his attendance to the plaintiff’s counsel or to the plaintiff himself, and he must also submit in court and address for must also submit in court an address for service of notice on him.
- After receiving the defendant’s notification of presence, the plaintiff issues him with a summons for judgment.
- The defendant should ask for permission to defend within 10 days of receiving the summons, and such permission will be given only if the defendant’s declaration reveals information that the court thinks is adequate to allows him to defend.
S.S. Steel Industry v. Guru Hargobind steels (2019) In S.S. Steel Industry v Guru Hargobind Steels, the Delhi High Court stated that order 37 Rule 2(3) CPC expressly states that the defendant shall not defend the civil case unless he makes his appearance, and in the absence of his presence, the assertions in the absence of his presence, the assertions in the plaint will be deemed admitted, and the plaintiff is entitled to a declaration for the total amount not exceeding the amount noted in the summons. Given the precise restrictions of order 37 rule 2(3) CPC, It is not within the trial court’s jurisdiction to determine whether the suit fulfils the requirements of Order 37 CPC or not. Once a summons in the specified format has been issued and formally delivery, the defendant is required to enter and appearance within the time limit; If the defendant falls to within the time limit; if the defendant falls to appear within the time frame, the averments in the plaint are accepted, and the plaintiff is granted a decree immediately.
What is the limitation if using a civil procedure?
The litigation must be brought within three years of the emergence of the cause of action. The aforementioned limited time cannot be condoned.
What is the time limit for civil procedure?
In a civil suit, the defendant has 10 day time period to prove his case.
What is the benefit of Order 37 CPC?
The main advantage of an Order 37 suit is that the plantiff is eligible for a judgment quickly. Except if the defendant establishes that he has a significant defence in his case. All that a plantiff needs to prove is that the matter comes under the purview of Order XXXVII.
To conclude, civil suits are a one of a kind method for preventing undue impediments by the defendant. Civil cases are advantageous to commercial enterprises because the claimant is eligible for a judgment if the defendant lacks a strong defence. Order 37 CPC guarantees that the defendant does not drag out the proceedings. The defendant in these instances can seek permission to defend if the possesses the necessary defence to demonstrate that his position is substantive in character; Otherwise, the plantiff has a stronger hand in the case. It also creates a suitable mechanism to guarantee that the defendant does not extend the lawsuit, especially as time is of the essence in business situations, and furthers the goal of justice.