Gujarat High Court

Conversion of Summary Suit to Long Cause Suit Mandates Issuance of Fresh Summons Before Proceeding Ex-Parte

THE ORIENTAL INSURANCE COMPANY LTD. vs A MANIYAR HEALTHCARE PVT. LTD.

Gujarat High CourtJUDGMENT: July 20, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Appellant insurance company challenged a judgment dated March 15, 2025, which had decreed a commercial suit in favor of the Respondent

Source reference: p. 1, para. 1

Initially, the Respondent filed a summary suit under Order 37 of the CPC for money recovery

Source reference: p. 2, para. 2

On September 3, 2024, the trial court determined the suit did not meet the criteria for a summary suit and converted it into a "long cause suit"

Source reference: p. 2, para. 3

Simultaneously, the trial court allowed an application to proceed ex-parte because the defendant had not appeared during the summary stage

Source reference: p. 2, para. 3

The Appellant contended that the trial court failed to issue fresh summons after the nature of the suit was changed

Source reference: p. 3, para. 4
02

Issues

1. Whether a commercial court can proceed ex-parte in a long cause suit based solely on a defendant's non-appearance in the prior summary suit proceedings

Source reference: p. 3, para. 4

2. Whether the trial court was required to issue fresh summons to the defendant after converting a summary suit under Order 37 CPC into a regular long cause suit

Source reference: p. 4, para. 6-7
03

Law Applied

Section 13 of the Commercial Courts Act, 2015, governing appeals from commercial court decrees

Source reference: p. 1, para. 1

Order 37 of the Code of Civil Procedure, 1908, regarding summary suits and the transition to regular civil procedure (long cause)

Source reference: p. 2-3, paras. 3-4

Section 12 of the Commercial Courts Act, 2015, regarding Pre-Institution Mediation and the implications of a "Non-Starter Report" on subsequent litigation

Source reference: p. 3-4, paras. 5-6
04

Reasoning

The High Court found that the trial court committed a procedural error. While the Respondent argued that the Appellant was aware of the dispute due to unsuccessful Pre-Institution Mediation and previous summary summons, the Bench held that such knowledge did not waive the court's duty to follow standard procedure

Source reference: p. 3-4, paras. 5-6; p. 4, para. 6

The court reasoned that once a suit is converted from a summary suit to a regular long cause suit—specifically because it was found not maintainable under Order 37—it becomes mandatory for the court to issue fresh summons

Source reference: p. 3, para. 4

Proceeding ex-parte on the basis of the order that converted the suit style was deemed a "grave error of law"

Source reference: p. 4, para. 7
05

Holding

The High Court allowed the appeal and set aside the judgment and decree dated March 15, 2025

The Commercial Civil Suit was restored to the trial court for fresh adjudication. The Court directed both parties to appear before the trial court on August 17, 2026, and instructed the trial court to conclude the proceedings preferably within one year. No costs were awarded

Source reference: p. 5, para. 8; p. 5, para. 8(i)-(ii); p. 6, para. 9
Gujarat High Court

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THE ORIENTAL INSURANCE COMPANY LTD.vsA MANIYAR HEALTHCARE PVT. LTD.

Gujarat High Court · July 20, 2026

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