What is difference between summary procedure as provided under Civil procedure code and The commercial courts Act?

 Summary procedure is a legal process designed to expedite the resolution of certain types of cases, typically by allowing for a faster and simpler resolution than the regular court process. In the context of Indian law, both the Civil Procedure Code (CPC) and the Commercial Courts Act provide mechanisms for summary procedures, but they differ in scope, application, and specific procedures.

Summary Procedure under Civil Procedure Code (CPC)

The summary procedure under the CPC is governed by Order XXXVII. Here are the key aspects:

1. Scope:

   • The summary procedure under Order XXXVII is primarily applicable to suits based on promissory notes, bills of exchange, or contracts in writing.

2. Process:

   • The plaintiff files a plaint indicating that the suit is under Order XXXVII.
   • The defendant is served with a summons in a prescribed format, informing them of the summary nature of the suit.
   • The defendant must enter an appearance within 10 days of service of summons.
   • Upon entering an appearance, the plaintiff serves the defendant with a summons for judgment.
   • The defendant then has 10 days to apply for leave to defend, supported by an affidavit.
   • The court may grant leave to defend if it finds the defendant has a substantial defense or if the facts require investigation. If the leave is granted unconditionally or upon such terms as the court may deem fit.
   • If the defendant does not appear or fails to obtain leave to defend, the court may pass a judgment in favor of the plaintiff.

3. Objective:

   • To provide a fast-track mechanism for certain types of suits where the claim is clear and straightforward, reducing the time and expense involved in litigation.

Summary Procedure under Commercial Courts Act

The summary procedure under the Commercial Courts Act, 2015, is outlined in Order XIII-A of the Act. Here are the key aspects:

1. Scope:

   • The summary procedure is applicable to commercial disputes of a specified value.
   • Commercial disputes include a wide range of matters such as those related to trade, business, contracts, intellectual property, and more.

2. Process:

   • Either party can apply for a summary judgment at any time after summons have been served and before the framing of issues.
   • The application for summary judgment should be supported by evidence to show that there is no real prospect of the other party succeeding on the claim or defense.
   • The respondent has the opportunity to file a reply and produce evidence to demonstrate that the claim or defense has a real prospect of success.
   • The court can pass a summary judgment if it is satisfied that the claim or defense has no real prospect of succeeding and there is no compelling reason why the case should proceed to trial.

3. Objective:

   • To ensure a speedy resolution of commercial disputes, which is critical for business and economic activities.
   • To filter out claims or defenses that are meritless and do not require a full trial, thereby reducing the burden on courts and litigants.

Key Differences

• Nature of Cases:

  • CPC Order XXXVII is limited to certain financial instruments and written contracts.
  • Commercial Courts Act covers a broader range of commercial disputes.

• Threshold:

  • CPC Order XXXVII does not have a monetary threshold.
  • Commercial Courts Act applies to disputes above a specified value.

• Initiation:

  • Under CPC, the plaintiff initiates the summary procedure by filing a plaint under Order XXXVII.
  • Under the Commercial Courts Act, either party can apply for a summary judgment after the service of summons.

• Leave to Defend:

  • In CPC, the defendant must apply for leave to defend.
  • Under the Commercial Courts Act, the respondent opposes the application for summary judgment by showing a real prospect of success.

Both procedures aim to streamline the legal process for specific types of disputes, but they cater to different categories of cases and have distinct procedural requirements.

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