Introduction to Order 37 Summary Procedure
Order 37 of the Civil Procedure Code (CPC) deals with summary suits related to negotiable instruments such as the recovery of money in court:
- Cheques
- Promissory Notes
- Bills of Exchange (Hundis)
This procedure is faster than a regular civil suit, ensuring quicker justice for disputes involving negotiable instruments.recovery of money in court:
Difference Between Regular Suit & Summary Suit (Order 37)
Regular Civil Suit Procedure
- Filing of Plaint
- Issuance of Summons
- Defendant Files Written Statement (Return of Summons)
- Framing of Issues
- Evidence from Both Parties (Plaintiff & Defendant)
- Final Arguments & Judgment
- recovery of money in court:
Summary Suit (Order 37) Procedure
- Filing of Suit (Special Format under Order 37)
- Issuance of Special Summons (Different from Regular Summons)
- Defendant Must Seek “Leave to Defend” Within 10 Days
- If Leave to Defend is Granted → Case proceeds like a regular suit.
- If Leave to Defend is Denied → Court passes a decree in favor of the plaintiff.
- Execution of Decree (Recovery of Money)recovery of money in court:
Key Features of Order 37 Summary Suit
1. Applicability
- Only in High Court, District Court, or Specified Civil Courts
- Mostly filed in District Courts in Punjab & other states.
- recovery of money in court:
2. No Automatic Right to Defend
- Defendant cannot directly file a written statement.
- Must file an application for “Leave to Defend” within 10 days of summons.
- If no application is filed → Court passes an ex-parte decree.
- recovery of money in court:
3. Fast-Track Judgment
- If Leave to Defend is rejected, the plaintiff gets a decree immediately.
- If Leave to Defend is allowed, the case proceeds like a regular suit.
- recovery of money in court:
4. Recovery Includes Principal + Interest
- The decree includes:
- Principal amount of the negotiable instrument.
- Interest as per Sections 79 & 80 of the Negotiable Instruments Act, 1881.
- Costs of the suit.
When to File a Summary Suit?
- Cheque Bounce Cases (Most Common)
- Unpaid Promissory Notes
- Default on Bills of Exchange (Hundis)
- recovery of money in court:
Cheque Bounce Cases – Criminal vs. Civil Remedy
- Criminal Remedy (Section 138 NI Act) → Punishment (up to 2 years) but no automatic recovery.
- Civil Remedy (Order 37 CPC) → Money recovery through summary suit.
Best Practice: File both a criminal complaint (for punishment) and a summary suit (for recovery).
recovery of money in court:
Defendant’s Options in Summary Suit
- File “Leave to Defend” Application Within 10 Days
- Must submit an affidavit disclosing valid defenses (e.g., forgery, stolen cheque, no liability).
- Court may impose conditions (e.g., deposit security).
- If No Application Filed → Automatic Decree Against Defendant
Can Defendant Challenge the Decree Later?
- Yes, if summons were not received, the defendant can file an application under Rule 4 to set aside the decree.
Conclusion
- Order 37 provides a speedy remedy for negotiable instrument disputes.
- Plaintiff gets a quick decree if the defendant fails to defend properly.
- Defendant must act within 10 days to avoid automatic loss.
For cheque bounce cases, always consider both criminal complaint (Section 138 NI Act) and summary suit (Order 37 CPC) for maximum legal protection.