Whether Summary suit based on settled account or Account stated is maintainable?

 In so far as the 'settled account is concerned,' it is no doubt true as noticed by the learned single Judge, that the various judgments adverted to, for holding that the summary suit would lie on a settled account, either of the Privy Council or of the Supreme Court did not arise from suits filed as summary suits. However, after the judgment of the Privy Council (Elvira L. Rodrigues) Sequeira (supra) which has been considered by the Supreme Court in Hiralal & Ors. (supra), a summary suit on a settled account, duly confirmed by the Defendant is maintainable as it is an acknowledgement by the Defendant in the ledger in which mutual accounts have been entered and the accounts settled between them. Such settling of accounts gives rise to a written contract on a fresh cause of action, with an implied promise to pay the amount settled. A summary suit would therefore lie on 'Settled accounts duly confirmed by the defendants. Issue (1) is answered accordingly.{Para 29}

IN THE HIGH COURT OF BOMBAY

Summons for Judgment No. 1117 of 2003 in Summary Suit No. 1551 of 2003 

 Jyotsna K. Valia and Ors. Vs. T.S. Parekh and Co. and Ors.

Hon'ble Judges/Coram:

F.I. Rebello, V.K. Tahilramani and Abhay Shreeniwas Oka, JJ.

Author: F.I. Rebello, J.

Decided On: 26.04.2007

Citation: citations: 2007 (3) BomCR 772, 2007 (4) CTC 257, 2007 (4) MhLj 517,MANU/MH/0252/2007.

Read full Judgment here: Click here.

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