The Supreme Court has pulled up the Bombay High Court for bypassing key steps in a commercial summary suit, ruling that a defendant cannot file a simple reply without first seeking formal permission to defend. The decision came in Executive Trading Company Pvt. Ltd. vs. Grow Well Mercantile Pvt. Ltd., a business recovery dispute involving over ₹2.15 crore.
Background
Executive Trading had dragged Grow Well Mercantile to court in 2019, claiming unpaid dues of ₹2.15 crore plus hefty interest. Under India’s Civil Procedure Code (Order 37), such “summary suits” allow speedy recovery when the debt is admitted or clearly documented. Grow Well initially entered appearance but did not apply for “leave to defend,” a mandatory step if it wanted to contest the claim. Instead, it sought dismissal citing a pre-suit mediation requirement. After failed mediation, the plaintiff amended its claim. The defendant finally sought to condone the delay in seeking leave to defend in January 2024, but that application is still pending.
Court’s Observations
A bench of Justices Ahsanuddin Amanullah and S.V.N. Bhatti noted that the High Court’s December 2023 order, which permitted the defendant to file a reply without leave, “goes to the root of the matter.” Justice Bhatti explained that Order 37 creates a special fast-track process:
“If a reply or defence is allowed to come on record in a summary suit without the leave of the court,” the bench observed, “then the distinction between an ordinary suit and a summary suit stands effaced.”
The judges emphasised that the law requires a defendant to first convince the court of a genuine defence before submitting any detailed reply.
Decision
Setting aside the High Court’s order, the Supreme Court restored the strict procedure. The bench clarified that Grow Well Mercantile is still free to pursue remedies, including applying for leave to defend or seeking condonation of delay, but only by following the correct steps laid out in Order 37 Rule 3. No costs were imposed.
Case Title: Executive Trading Co. Pvt. Ltd. v. Grow Well Mercantile Pvt. Ltd. – Supreme Court on Summary Suit Procedure
Decision Date: 25 September 2025
