Delhi High Court Upholds Summary Procedure in Loan Recovery Case

In a recent judgment, the Delhi High Court upheld the summary procedure for the expeditious disposal of suits in a case related to the recovery of a loan amount. The appellant's appeal, filed under Section 96 of the Code of Civil Procedure (CPC), was dismissed by HON’BLE MR. JUSTICE PRATEEK JALAN on September 27, 2023.

The case involved a suit filed by the respondent for the recovery of a loan of Rs. 6,00,000/-. The appellant had initially sought leave to defend, which was granted conditionally. However, the appellant failed to comply with the conditions set by the Trial Court, leading to the passing of the impugned judgment.

The court emphasized the importance of adhering to timelines under Order XXXVII of the CPC, which provides for a summary procedure to avoid protracted procedural delays in defenseless suits. The Trial Court had granted sufficient opportunities to the appellant, including conditional leave to defend, in line with the principles laid down by the Supreme Court.

The appellant's contentions that they were not aware of the conditions imposed were rejected by the Trial Court, which deemed the subsequent application and appeal as attempts to evade liability. Consequently, the procedure under Order XXXVII Rule 3(6)(b) of the CPC was followed, allowing judgment in favor of the respondent.

HON’BLE MR. JUSTICE PRATEEK JALAN stated, "The summary procedure has been provided to obviate protracted procedural delays in defenseless suits, and it must be strictly followed." The court found no merit in the appellant's arguments and dismissed the appeal with costs awarded to the respondent.

This judgment reaffirms the significance of procedural compliance and adherence to the timelines set by the law in cases governed by summary procedures.

Date of Decision: September 27, 2023

NAVJOT SINGH VS ALEXANDER DAS