Order 37 cpc
rajan chopra
(Querist) 21 September 2015
This query is : Resolved
Sir in a summary suit filed u/s 37 CPC can plaintiff demand interest 18% per annum as agreed along with principle amount or not ?
rajagopal.s
(Expert) 21 September 2015
Order 37 CPC is one of the best provisions in the hands of a proposed Plaintiff, wanting to institute a Civil Suit. Broadly it states as under:
Rule 1, Sub-Rule 2 makes it applicable to all suits upon bills of exchange, hundies and promissory notes or the ones in which a Plaintiff seeks only to recover a debt or liquidated demand in money payable on a written contract, an enactment, where the sum to be recovered is a fixed sum of money or in nature of any debt except penalty, a guarantee - in respect of a debt or liquidated demand.
if your debt is defined that is at 18% per annum, then you can claim. Depends on how the promissory note is worded.
rajan chopra
(Querist) 22 September 2015
Sir the suit is based on bouncing of cheque and it was orally settled between me and the borrower that in case the borrower fails to honour the cheque he shall be liable to pay interest @ 18% per annum to me from the date of cheque till realization of entire amount.
rajan chopra
(Querist) 25 September 2015
Waiting for response
Anirudh
(Expert) 25 September 2015
Summary suit under Order 37 CPC is only in regard to admitted liability. Clearly the interest which you say was orally agreed upon will not come under the category of admitted liability. Therefore you will not be in a position to claim interest in the given situation.
