CIVIL APPEAL 1021 of 2003 on 2 November 1998

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONSUMMONS FOR JUDGMENT NO.1021 OF 2003INSUMMERY SUIT NO. 3040 OF 2003

Rukmanidevi N. Agarwal.

V/s.

Sampat Traders Pvt. Ltd.

... Plaintiff.

... Defendant.

Mr. Mr. Chetan B. Raithatha i/b. S. Ashwini Kumar& Co. for the Plaintiff.None for the Defendant.

P.C. :-

CORAM : DR. D.Y. CHANDRACHUD,J.18TH JUNE 2007.

Advocate’s Notice addressed on behalf of the Plaintiff.

5th October 2000. The suit is therefore instituted within the prescribed period of limitation.

3. The next defence is that the suit has been instituted on monies due at the foot of an account and is not maintainable as a Summary Suit.

judgment of the Full Bench has been rendered on 26thApril 2007 in Jyotsna K. Valia V/s. M/s. T.S.Parekh & Co.(Summons for Judgment 1117 of 2003 inSummary Suit 1551 of 2003 and connected matters.)Dealing with the position of a settled account or an account stated, the Full Bench has observed as follows :- "In so far as the settled account isconcerned, it is no doubt true as noticed by thelearned single Judge, that the various judgmentsadverted to, for holding that the summary suitwould lie on a settled account, either of thePrivy Council or of the Supreme Court did notarise from suits filed as summary suits.However, after the judgment of the Privy Council(Olvira L. Rodrigues) Sequeira (Supra) which hasbeen considered by the Supreme Court in Hiralal &Ors. (supra), a summary suit on a settledaccount, duly confirmed by the Defendant ismaintainable as it is an acknowledgement by theDefendant in the Ledger in which mutual accountshave been entered and the accounts settledbetween them. Such settling of accounts gives rise to a written contract on a fresh cause of action, with an implied promise to pay the amountsettled. A summary suit would therefore lie onsettled accounts duly confirmed by theDefendants. Issue (i) is answered accordingly."

5. In the circumstances, it is apparent that the suit and at the same rate until payment or realisation.

6. Refund of Court fees if any, as per rules.