Law: Code Of Civil Procedure, 1908.

Section: 1 & 2, 10, 115

Law: Negotiable Instruments Act, 1881

Section: 56

Summary

The Court held that partial payment made pursuant to a court-recorded compromise during pendency of a summary suit does NOT render the suit under Order XXXVII CPC non-maintainable.

The petitioners’ plea for return of plaint under Order VII Rule 10 CPC was rejected because:

• The suit was validly instituted on cheques (negotiable instruments).
• Partial payment was made after institution, under a judicial compromise, not before.
• Such payment does not attract Section 56 of the Negotiable Instruments Act, 1881.
• Petitioners had admitted liability and benefited from compromise, thus are estopped from raising jurisdictional objections.

Result:
Civil Revision dismissed in limine; trial court order upheld.