A summary suit under Order XXXVII of the Code of Civil Procedure, 1908 is a suit for recovery of a debt or liquidated sum arising on a bill of exchange, hundi, promissory note, written contract, enactment or guarantee. The defendant must enter appearance within 10 days of service and then apply for leave to defend within 10 days of the summons for judgment, showing a substantial defence. If leave is refused, the plaintiff is entitled to a decree at once.
How a summary suit works in India
- Plaint filed with the invoices, PO or contract, delivery proof, ledger and the legal notice, specifically stating it is under Order XXXVII.
- Summons served; the defendant must enter appearance within 10 days or face a decree.
- Plaintiff serves summons for judgment; the defendant has 10 days to apply for leave to defend with an affidavit disclosing facts.
- Court grants unconditional leave (triable issue), conditional leave (usually a deposit of part or all of the claim), or refuses leave.
- If leave is refused or the condition is not met, decree for the amount with interest and costs.
The Supreme Court's guidance in the IDBI Trusteeship case sets out when leave should be granted, conditional or refused. A defence raised for the first time after the notice, without any contemporaneous complaint, is often treated as not substantial.
Why it matters for getting paid
For traders, medium enterprises and anyone outside the MSMED Act, the summary suit is the main civil remedy for clear invoice dues. It shifts the burden onto the buyer at the outset, and a conditional leave order requiring a deposit frequently produces settlement. Claims of ₹3 lakh and above in commercial matters go before the Commercial Court, where the Commercial Courts Act adds strict timelines. Check your deadline with the limitation period calculator.
How FundRaksha uses it
When a FundRaksha client is not eligible for Samadhaan and holds signed POs, accepted invoices or a ledger confirmation, the dedicated advocate files a summary suit after the notice period. Court fees are borne by the client and told upfront; FundRaksha's fee is 30% of the amount recovered. Of 1,000+ businesses onboarded, most never reach this stage because the buyer settles at notice.
Worked example (hypothetical)
A Mumbai packaging trader is owed ₹15,00,000 on invoices against a signed rate contract, with a ledger confirmation signed by the buyer six months ago. Notice is ignored. A summary suit is filed in the Commercial Court (specified value above ₹3 lakh) after pre-institution mediation fails. The buyer applies for leave to defend citing "quality issues" never raised earlier. The court grants conditional leave on deposit of ₹15,00,000 within eight weeks. The buyer instead settles for ₹15,00,000 plus ₹1,35,000 interest (18% contractual rate for six months, simple) and costs.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.