For companies, partnership firm, proprietor ship firm and traders etc.. can file a suit for recovery their unpaid bills/ Business due amount or payment where:-
There are any written contract/agreement between the parties.
Then they can file a summary suit under order XXXVII Civil Procedure Code. In this suit debtors have very limited scope to avoid to pay the debts to the parties, as there are very few chances to delay the proceeding. Every case has to special character and its depends upon the matter to matter.
If any party has filed a suit under this order and rule, then after putting the appearance before the Court within ten days and after service of summon for judgments, defendant can seek leave to defend for contesting the matter and its depends upon the court that leave may be grant or not.
For filing of debt recovery suit U/o XXXII Civil Procedure Code are based upon this guide line define in this section/under order as under.
INSTITUTION OF SUMMARY SUITS:
- A suit, to which this order applies, may if the plaintiff desires to proceed hereunder, be instituted by presenting a plaint which shall contain-
a specific averment to the effect that the suit is filed under this order:
that no relief, which does not fall with in the ambit of this rule, has been claimed in the plaint: and the following inscription, immediately below the number of the suit in the title of the suit namely-“(U/o XXXVII of the code of Civil procedure , 1908)
COURT AND CLASSES OF SIUTS TO WHICH THE ORDER IS TO APPLY-
1. This order shall apply to the following courts, namely
(a) High courts, city civil Courts and courts of small cause.
(b) other courts: provided that in respect of the court s referred to in clause (b), the high Court may, by notification in the official gazette, restrict the operation of this order only to such categories suits as it deems proper, and may also, from time to time, as the circumstances, of the case may require, by subsequent notification on the official gazette, further restrict, enlarge or vary, the categories of suits to be brought under the operation of this order as it deems proper.
2. Subject to the provisions of Sub Rules (1), the order applies to the following classes of suits namely-
(a) suits upon will 0f exchange, Hundies and promissory notes:
(b)suits in which the plaintiff seeks only to recover a debt or liquidated demand in money payable by the defendant, with or without interest, arising-
(i) on a written contract, or
(ii) on an enactment, where the sum sought to be recovered is a fixed sum of money or in the nature of the debt other then a penalty: or
(iii) on a guarantee, where the claim against the principal is in respect of a debt or liquidated demand only.
If written Contract or Agreement is not there then a simple civil recovery suit will be file on the basis of facts and circumstances of the case.
Jurisdiction to File a suit in Delhi
In Delhi ,India at persent party can file a suit for the recovery upto 3 lakh before the Civil Judge and above 3 lakhs, then party may file before Addl.civil Judge but bellow Rs. 20 Lakhs.
if amount exceeding Rs.20 lakhs the party may file their suit in Delhi High Court.
Court Fees : for the recovery of amount,party must pay the court fees as per the Indian Court Fees Act bt and Money Suit.