Monday 17 May 2021

What is basic concept of liquidated demand in Summary Suit?

  Order XXXVII Rule 1 CPC applies to suits in which a debt or

liquidated demand is sought to be recovered. The term ‘liquidated demand’ has been defined by a ld. Single Judge of this Court in Rajinder Kumar Khanna v. Oriental Insurance Co., AIR 1990 Del 278 as follows:

“2. It was asserted by the plaintiff in the suit and

the petitioner before me, that the claim in the suit

was a “liquidated demand”. The petitioner seeks

to take advantage of the amendments made to the

Code of Civil Procedure, by which “liquidated

demand” became subject-matter of summary suits

for the first time.

3. The industry of counsel had not been able to

produce a single precedent of courts in India,

which explained what is “liquidated demand”.

However, reference has been made to Words and

Phrases Permanent Edition, in which reference is

made to Rifkin v. Safenovitz, 40 A 2d 188. It is

stated that “amount claimed to be due is a

“liquidated demand” within statute authorizing

summary judgments if it is susceptible of being

made certain in amount by mathematical

calculations from factors which are or ought to be

in possession or knowledge of party to be

charged”.”

It is therefore clear that any sum which can be ascertained from the documents on record would constitute a liquidated demand.{Para 11}

 IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of Decision: 15th December, 2020

 C.R.P. 57/2020 & CM APPL.20305/2020

SURENDER KUMAR  Vs  MANOJ KUMAR

 

CORAM:

JUSTICE PRATHIBA M. SINGH

Prathiba M. Singh, J. (Oral)

Dated: DECEMBER 15, 2020.

Read full Judgment here: Click here

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