Allowed

Creation Publicity Pvt. Ltd. v. M/S. S.P. Builders and Ors.

Bombay HC20 Mar 2007SJ/36/2007

Case brief

AI extract

What is this about?

The High Court at Bombay made a Summons for Judgment absolute under Order 37 of the CPC, 1908, due to the defendants' failure to file a reply affidavit to a suit for cheque recovery based on dishonoured instruments, acknowledging liability.

What did the court decide?

A decree was passed in terms of the prayer clause, allowing recovery of the principal amount with interest at 9% p.a.

Creation Publicity Pvt. Ltd. Vs M/S. S.P… — Contract and Commercial Disputes | Bombay HC (2007)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J.

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SUMMONS FOR JUDGMENT NO.36 OF 2007 IN SUMMARY SUIT NO.2983 OF 2006

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Creation Publicity Pvt. Ltd. ...Plaintiff. Vs. M/s. S.P. Builders & Ors. ...Defendants.

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Mr. S.T. Manek for the Plaintiff. Mr. A.K. Chawhan i/b. M/s. Ranjit & Co. for the Defendants.

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CORAM : DR.D.Y.CHANDRACHUD, J . 20^th March 2007. P.C .:

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The Summary Suit under Order 37 of the Code of Civil Procedure, 1908, has been instituted for the recovery of an amount of Rs.27,52,218/- together with interest on the principal sum of Rs.15 lakhs, on the basis of dishonoured cheques. In para 2.3 of the Plaint, it has been averred that the Plaintiff had paid an amount of Rs.15 lakhs by a cheque dated 15^th October 2002 drawn on the Bank of Baroda to the First, Second and Third Defendants which was duly encashed. A deed of confirmation was executed on 14^th October 2002 which affirmed the aforesaid payment and the liability of the Second and Third Defendants to pay an amount of Rs. 18.15 lakhs for which a cheque dated 14^th October 2003 had

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been handed over. The payment was jointly guaranteed by the Fourth and Fifth Defendants who had also handed over their cheques in the like amount. The cheques were dishonoured on presentation. Thereafter, an affidavit was executed by the Second, Third, Fourth and Fifth Defendants on 18^th July 2004 (Exh.N), after a criminal complaint had been instituted acknowledging the liability in the amount of Rs.21,17,486/-.

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The Summons for Judgment was served on 2^nd February 2007. On 6^th March 2007, an adjournment was granted on the request of the Defendants subject to the payment of costs of Rs.10,000/-. Despite the expiry of the period of two weeks, no affidavit in reply has been filed. No cogent explanation is forthcoming to explain the reason why no reply was filed to the Summons for Judgment.

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The claim in the suit is based on cheques which have been dishonoured and falls under the purview of Order 37 Rule 1 of the Code of Civil Procedure, 1908. The Defendants have acknowledged their liability. Since there has been no reply, a decree therefore, has to follow. Accordingly, the Summons for Judgment is made absolute. Accordingly, there shall be a decree as prayed in terms of prayer clause (a), subject to the modification

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that the Plaintiff shall be entitled to interest at the rate of 9% p.a.

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from the date of the suit until payment or realisation.

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Refund of Court fee, if any, as per rules.

Creation Publicity Pvt. Ltd. v. M/S. S.P. Builders and Ors.

Case brief

What is this about?

What did the court decide?

Creation Publicity Pvt. Ltd. v. M/S. S.P. Builders and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Coram

Case details

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