Unsigned Invoices A Valid Basis To File Summary Suit Under Order 37 Of CPC: Delhi High Court

The Delhi High Court has held that unsigned invoices can be a valid basis to file suit under Order 37 of the Code of Civil Procedure. Order 37 of the Code talks about summary procedure and institution of summary suits.

Justice Amit Bansal was dealing with a petition challenging the order dated 12th October, 2021 passed by the District Judge of the Saket Courts whereby the commercial suit filed on behalf of the petitioner was converted from a suit under Order XXXVII of the CPC to an ordinary suit for recovery.

This was done on the ground that the invoices raised by the petitioner on the respondent did not bear the signatures of either parties.

It was the case of the petitioner that summons were served on the respondent on 18th August, 2021. However, the respondent failed to enter appearance. When the matter was taken up by the Commercial Court on 12th October, 2021, the suit was unilaterally converted into an ordinary suit only on the basis that the invoices were not signed.

The petitioner therefore argued that there was no requirement to sign the said invoice as the same was sent through an email dated 26th June, 2018, for which necessary application under sec. 65 B of the Indian Evidence Act was filed by the petitioner before the Commercial Court.

Court's attention was further drawn to the receipt of the said invoice which was duly acknowledged by the respondent vide email dated 11th November, 2020.

Reliance was accordingly placed by the petitioner in the Supreme Court judgment titled Flint Group India Private Limited vs. Good Morning India Media Private Limited to argue that a suit under Order XXXVII of the CPC is maintainable on the basis of an invoice.

Perusing the facts of the case, the Court noted that the only reason given by the Commercial Court to unilaterally change the suit from being a suit under Order XXXVII of the CPC to an ordinary recovery suit was that the suit was based on an unsigned invoice and that the original of the invoice was not placed on record.

"In the modern-day businesses, where all communications are through emails, invoices are routinely sent through email and such invoices are not signed by the parties," the Court said.

It added:

"Therefore, there is no such thing as the original of the invoice. Invoice in the present case has been raised by the petitioner on the respondent and details of services as well as the purchaser have been duly mentioned in the invoice and receipt of the said invoice has also been acknowledged by the respondent."

The Court was therefore of the view that the decision of the Supreme Court is applicable in the instant matter.

"Accordingly, it is held that unsigned invoices can be a valid basis to file a suit under Order XXXVII of the CPC," the Court held.

The Court said that the impugned order suffered from material illegalities which warranted interference by the High Court in exercise of its jurisdiction under Article 227 of the Constitution of India.

"In view of the above the present petition is allowed and the impugned order is set aside. It is directed that the suit will be treated as a suit under Order XXXVII of the CPC," the Court said.

Title: FLICK STUDIOS PVT. LTD v. GRAVITY ENTERTAINMENT PVT. LTD

Citation: 2022 LiveLaw (Del) 37

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