High Court · 2025

1C.S.No.182 of 2024MASTER19.12.2025JUDGMENT 1. This summary suit has been filed under Order VII Rule 1 of Original Side Rules read with Order XXXVII Rule 1 of CPC to pass a judgment and decree directing the defendants 1 to 3 through their power agent, 4th defendant herein to pay the Plaintiff a total sum of Rs.4,42,40,000/- (Rupees Four Crores Forty Two Lakhs Forty Thousand only) together with interest at the rate of 24% per annum on the principles sum of Rs.2,76,50,000/- (Rupees Two Crores Seventy Six Laksh Fifty Thousand only) from 29.06.2024 to till the date of payment and similarly, to pay a sum of Rs.1,00,000/- towards damages.2. After filing of the suit, summons were served on the defendants 1 to 4. The 3rd defendant entered this appearance and filed an application for leave defend in A No.6150 of 2025 which was allowed by this court on 24.07.2025. But the defendants 1, 2 and 4 have not chosen to appear and file any application for obtaining leave to defend the suit. Hence the suit is listed for passing of decree against defendants 1, 2 and 4. When the suit was posted for hearing the learned counsel for the 3rd defendant appeared before this court and represented that 3rd defendant has revoked power of attorney infavour of the 4th defendant and further leave to defend was also granted in his favour. The learned counsel for the plaintiff submitted that he https://www.mhc.tn.gov.in/judis 2is giving up the case against 3rd defendant and also made an endorsement to that effect. 3. Now the point to be decided is whether the plaintiff is entitled to a decree as prayed for against defendants 1, 2 and 4?4. At this juncture, it is useful to point out the relevant provisions of the procedure laid in Madras High Court Original Side Rules to try summary suits.Order VII Rule 1 runs as underR.1. A suit to recover a debt or a liquidated demand in money, evidenced by a document, or any money payable by the defendant with or without interest, arising on a negotiable instrument or on a bond or a contract for payment of a liquidated amount of money evidenced by a document, or on a guarantee where the claim arises against the principal in the manner aforesaid, may, in case the plaintiff desires to proceed hereunder, be instituted by presenting a plaint in the form prescribed.For the purpose of this order “Liquidated demand” means a demand for the amount stated or so expressed that the ascertainment of the amount is a mere matter of calculation.Order VII Rule 5 runs as underR.5. In any case in which the plaint and summons are in the form prescribed in this order, the defendant shall not defend the suit unless he obtains leave to defend from the Master as hereinafter provided. In default of the defendant obtaining such leave, or if he fails to defend in pursuance of such leave, the allegations in the plaint shall be deemed to be admitted and the plaintiff shall be entitled to a decree for the sum claimed in the plaint, and in cases where interest is payable either by contract or statute, interest till the passing of the decree and further interest at six percent per annum from the date of the decree to the date of payment, and such sum for costs as may be prescribed.Order VII Rule 6 runs as under https://www.mhc.tn.gov.in/judis 3R.6. (1) An application for leave to defend the suit shall be made to the Master supported by such evidence by way of affidavit as the defendant desires to place before the Court.(2) Leave to defend may be given unconditionally or subject to such terms and directions as the Master thinks fit.(3) The Master shall, (a) if the defendant does not appear, on proof by affidavit of service of the summons on the defendant, or (b) if leave to defend is not granted, pass a decree for the amount claimed and costs.5. As per original side rules of Madras High Court, in any case which is tried summarily in which the plaint and summons are in the form prescribed in this order, the defendant shall not defend the suit unless he obtains leave to defend from the Master. In default of the defendant, the allegations in the plaint shall be deemed to be admitted and the plaintiff shall be entitled to a decree for the sum claimed in the plaint.6. Further, if the defendant does not appear, on proof of affidavit of service on the defendant, the Master shall pass a decree for the amount claimed in the plaint with the cost. 7. In the case in our hand, after receiving summons, the defendants 1, 2 and 4 did not appear and did not take any steps to file application for obtaining leave to defend the suit as per Madras High Court Original Side Rules and further the counsel for the plaintiff has given up the case against 3rd defendant. Since, the defendants 1, 2 and 4 did not appear and failed to file application for leave to defend, the averments in the plaint are deemed to be admitted and the plaintiff is entitled to Decree and Judgment as prayed for. https://www.mhc.tn.gov.in/judis 4In the result, this suit is decreed directing the defendants 1 and 2 through their power agent the 4th respondent herein to pay the plaintiff a sum of Rs.4,42,40,000/- (Rupees Four Crores Forty Two Lakhs Forty Thousand only) together with interest at the rate of 18% per annum on the principle sum of Rs.2,76,50,000/- (Rupees Two Crores Seventy Six Laksh Fifty Thousand only) from the date of presentation of the plaint till the date of the decree and 6% per annum for the amount of Rs.2,76,50,000/- (Rupees Two Crores Seventy Six Laksh Fifty Thousand only) from the date of the decree till the date of realization and the costs of this suit as fixed by the taxing officer. Further, the defendants 1 and 2 through their power agent 4th defendant is directed to pay a sum of Rs.1 lakh as damages. The suit against 3rd defendant is dismissed as not pressed. Sd/- MASTER