Delhi District Court
Sunny And Ors vs Ajay Dabas on 30 August, 2025
IN THE COURT OF DR. ASHISH AGGARWAL
DISTRICT JUDGE-03, NORTH-WEST DISTRICT,
ROHINI COURTS, DELHI
CS No. : 148/2025
CNR No. : DLNW010017152025
In the matter of:
1. Sh. Sunny
S/o Sh. Jai Prakash
R/o Village Nilothi, Bahadurgarh,
Haryana
2. Sh. Naveen @ Naveen Dabas
S/o Sh. Karamvir Singh
R/o H. No. 286, Village Ladpur,
Delhi-110081 ... Plaintiffs
VERSUS
Sh. Ajay Dabas @ Ajay,
S/o Sh. Mahender Singh,
R/o H. No. 520 / H. No. 286, Village Ladpur,
Delhi-110081 ... Defendant
Date of institution : 19.02.2025
Date on which judgment was reserved : 18.08.2025
Date of pronouncement of the judgment : 30.08.2025
JUDGMENT
SUMMARY SUIT UNDER ORDER XXXVII CPC FOR RECOVERY OF A SUM OF RS. 15,00,000/- WITH INTEREST CS DJ 148/2025 Sunny & Anr. Vs. Ajay Dabas Page 1 of 8 Digitally signed by ASHISH ASHISH AGGARWAL AGGARWAL Date:
2025.08.30 16:40:33 +0530
1. The plaintiffs have instituted the present summary suit under Order XXXVII of the Code of Civil Procedure, 1908 (for short, "CPC"), seeking recovery of a sum of ₹15,00,000/- (Rupees Fifteen Lakhs only) being the aggregate amount of two cheques allegedly issued by the defendant in discharge of his liability, together with pendente lite and future interest at the rate of 24% per annum and costs.
2. The case of the plaintiffs, shorn of verbiage, is that the defendant, who claimed to be owner/occupant of a fractional share (1/20th) in certain parcels of agricultural land in Village Ladpur, Delhi, entered into an Agreement to Sell and Purchase dated 14.08.2017 in favour of the plaintiffs for sale of one bigha, for a total consideration of ₹15,00,000/-, which amount the plaintiffs assert to have fully paid on 14.08.2017 by two cheques and cash. The defendant allegedly failed to obtain requisite permissions/NOC and execute the sale deed; consequently, by an extended agreement dated 28.02.2023, time was enlarged, but the defendant still did not perform. The defendant is then stated to have issued two cheques bearing nos.
159825 and 159826 dated 02.01.2025 for an aggregate of CS DJ 148/2025 Sunny & Anr. Vs. Ajay Dabas Page 2 of 8 Digitally signed by ASHISH ASHISH AGGARWAL AGGARWAL Date:
2025.08.30 16:40:43 +0530 ₹15,00,000/- in favour of the plaintiffs towards refund/settlement; upon presentation, the cheques were dishonoured vide bank return memos dated 04.01.2025 and 06.01.2025.
3. The record shows that summons of the suit in the prescribed form under Order XXXVII Rule 2 CPC were issued to the defendant at the address pleaded and were served on 26.03.2025. The defendant failed to enter appearance within ten days as mandated by Order XXXVII Rule 3 (1) CPC, nor at any time thereafter.
4. Order XXXVII Rule 2 (3) of CPC entitles the plaintiff to a decree forthwith on the basis of the plaint and the affidavit verifying the cause of action and the sum due. The scheme of Order XXXVII has been explained and affirmed inter alia by Hon'ble Supreme Court in Rajni Kumar v. Suresh Kumar Malhotra, Appeal (civil) 2538 of 2003 decided on 28.03.2003. Where the defendant does not enter appearance, the allegations in the plaint are deemed admitted for the purposes of Order XXXVII and the plaintiff becomes entitled to a decree for the sum stated.
5. Order XXXVII Rule 1 (2) of CPC specifically covers suits based on negotiable instruments, including cheques. The present claim is CS DJ 148/2025 Sunny & Anr. Vs. Ajay Dabas Page 3 of 8 Digitally signed by ASHISH ASHISH AGGARWAL AGGARWAL Date:
2025.08.30 16:40:51 +0530 founded on two dishonoured cheques issued by the defendant; the antecedent agreements (14.08.2017 and 28.02.2023) are background facts evidencing the underlying transaction and the consideration. A claim for the amount due on cheques is squarely maintainable under the summary procedure set out by Order XXXVII of CPC.
6. The defendant is pleaded and shown to reside at Village Ladpur, Delhi-110081. This Court, therefore, possesses territorial jurisdiction to entertain the present suit, in accordance with Section 20 of CPC.
7. The suit valuation is ₹15,00,000/- which is well within the pecuniary bounds of this Court.
8. The suit is predicated on cheques dated 02.01.2025. The present suit, instituted on 19.02.2025, is within the three-year period prescribed by Article 35 of the Limitation Act, 1963.
9. In support of the suit, the plaintiffs have filed/relied upon (i) copy of Agreement to Sell & Purchase dated 14.08.2017; (ii) receipt dated 14.08.2017 acknowledging payment of ₹15,00,000/-; (iii) CS DJ 148/2025 Digitally Sunny & Anr. Vs. Ajay Dabas Page 4 of 8 signed by ASHISH ASHISH AGGARWAL AGGARWAL Date:
2025.08.30 16:40:59 +0530 extended agreement dated 28.02.2023; (iv) original cheques bearing nos. 159825 and 159826 dated 02.01.2025, aggregating ₹15,00,000/-, drawn by the defendant in favour of the plaintiffs; (v) bank return memos dated 04.01.2025 and 06.01.2025 showing dishonour of the cheques.
10. The plaintiffs' case is also fortified by the underlying contemporaneous documents--the 2017 agreement, the receipt for the full consideration, and the 2023 extension--which explain the genesis of liability culminating in issuance of the cheques towards refund/settlement when the defendant could not procure sale permission/NOC. The dishonour of cheques is evidenced by the bank memos. There is nothing on record to doubt the genuineness of these documents.
11. The core questions are: (i) whether the suit is maintainable under Order XXXVII; (ii) whether the plaintiffs have established a legally recoverable debt/liability of ₹15,00,000/- based on the two cheques; and (iii) what interest, if any, should be awarded.
ASHISH AGGARWAL Digitally signed by ASHISH AGGARWAL CS DJ 148/2025 Date: 2025.08.30 Sunny & Anr. Vs. Ajay Dabas Page 5 of 8 16:41:07 +0530
12. Maintainability stands answered in favour of the plaintiffs, the suit being founded upon negotiable instruments (cheques). (Order XXXVII Rule 1 (2) of CPC.)
13. On liability, the plaintiffs' uncontroverted affidavit and documents lead to the inevitable conclusion that the defendant issued the two cheques towards discharge of a subsisting liability of ₹15,00,000/-, and that the cheques were dishonoured upon presentation. In a summary suit where the defendant has failed to enter appearance, the Court is enjoined to decree the claim, subject to satisfaction as to correctness of the amount. The amount claimed corresponds to the face value of the two cheques and is neither excessive nor speculative.
14. The plaintiffs have prayed for pendente lite and future interest at the rate of 24% p.a.
15. There is no written covenant stipulating the interest rate. In the absence of an agreed rate, the award of interest is governed by Section 34 CPC, and is required to be reasonable and compensatory. Considering the nature of transaction (not a commercial lending), prevailing lending rates, and the equities of the case, an award of CS DJ 148/2025 Sunny & Anr. Vs. Ajay Dabas Page 6 of 8 Digitally signed by ASHISH ASHISH AGGARWAL AGGARWAL Date:
2025.08.30 16:41:14 +0530 simple interest at the rate of 9% p.a. pendente lite would meet the ends of justice.
16. The award of future interest is not contemplated by Order XXXVII Rule 2 (3) of CPC and it has been prescribed that interest must be only up to the date of decree.
17. The plaintiff must also be held entitled to costs of the suit, having being forced to incur expenditure in instituting and pursuing the suit.
18. While decreeing the suit, it may be borne in mind that the two cheques on which the suit has been founded are in favour of the two plaintiffs independently. Thus, the claims of the plaintiffs based on the cheques will have to be independently decreed.
19. In view of the foregoing, the suit is decreed under Order XXXVII Rule 2(3) CPC, in favour of the plaintiffs and against the defendant, as under:
a) A decree of ₹7,50,000/- (Rupees Seven Lakhs and fifty thousand only) is passed in favour of the plaintiff no. 1 and against the defendant.
ASHISH CS DJ 148/2025 AGGARWAL Sunny & Anr. Vs. Ajay Dabas Page 7 of 8 Digitally signed by ASHISH AGGARWAL Date: 2025.08.30 16:41:24 +0530
b) A decree of ₹7,50,000/- (Rupees Seven Lakhs and fifty thousand only) is passed in favour of the plaintiff no. 2 and against the defendant.
c) The plaintiffs shall be entitled to simple interest at the rate of 9% per annum on the aforesaid sums, from the date of institution of the suit till the date of decree (pendente lite interest).
d) The plaintiffs shall also be entitled to costs of the suit as per rules, including court fees paid by the plaintiffs.
20. Decree sheet be prepared accordingly. File be consigned to Record Room after due compliance.
Digitally signed by ASHISH Announced in open court ASHISH AGGARWAL AGGARWAL Date:
on 30th August, 2025 2025.08.30
16:41:31
+0530
(ASHISH AGGARWAL)
Distircit Judge-III, North-West Disttrict, Rohini Courts, Delhi.
This judgment contains 8 pages and each page is checked and signed by me.
CS DJ 148/2025 Sunny & Anr. Vs. Ajay Dabas Page 8 of 8