The Delhi High Court has held that unsigned invoices can be a valid basis to institute a suit under Order 37 of the Code of Civil Procedure, 1908. 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 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 related by the petitioner on the respondent did not contain the signatures of the parties.
Case of the Petitioner
Summonses 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 are not signed.
The petitioner, therefore, contended that there was no requirement to sign the said invoice as the same was through an email and for the same; the necessary application was sent under Section 65 B of the Indian Evidence Act filed by the petitioner before the Commercial Court.
The Court’s attention was further drawn to the receipt of the said invoice which was duly acknowledged by the respondent vide email dated November 11, 2020.
Observation of the Court
Observing 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 suit was based on the unsigned invoice and the original of the invoice was not placed on record.
“In modern-day business, where all communications are through emails, invoices are routinely sent through email and such invoices are not signed by the parties”, the Court said.
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 the exercise of its jurisdiction under Article 227 of the Constitution of India.
"In view of the above the present petition is allowed the impugned order is set aside. It is directed that the suit will be treated as the suit under Order XXXVII of the CPC”, the Court said.
Case Details
Before: Delhi High Court
Case Title: Flick Studios Pvt Ltd. v. Gravity Entertainment Pvt. Ltd.
Coram: Hon’ble Mr. Justice Amit Bansal
