Order XXXVII Rule 5 CPC - Deposit of Bill, Hundi or Note with Court
Order XXXVII Rule 5 of the Code of Civil Procedure, 1908 (CPC) empowers a court hearing a summary suit to direct the immediate deposit of the bill, hundi or note on which the claim is founded. The court may also stay the proceedings until the plaintiff furnishes security for costs. The rule helps safeguard the underlying instrument and addresses potential litigation costs.
Text of Order XXXVII Rule 5 CPC
In any proceeding under this Order the Court may order the bill, hundi or note on which the suit is founded to be forthwith deposited with an officer of the Court, and may further order that all proceedings shall be stayed until the plaintiff gives security for the costs thereof.
Source: Code of Civil Procedure, 1908 - official India Code text (First Schedule, Order XXXVII, Rule 5).
Meaning and scope of Rule 5
Summary suit: A civil suit brought under the special procedure in Order XXXVII, ordinarily concerning specified negotiable instruments or qualifying claims for a debt or liquidated money demand. Bill: In this context, a bill of exchange; hundi: a traditional indigenous negotiable instrument; note: a promissory note. The particular nature and enforceability of an instrument depend on the applicable law and facts.
Deposit with an officer of the Court: The court can direct that the instrument forming the basis of the suit be placed in the custody of a designated court officer. The word may makes this a discretionary power, not an automatic requirement in every summary suit.
Security for costs: A safeguard directed at possible litigation costs. The court may stay all proceedings until the plaintiff provides the security ordered. This is different from an automatic requirement to deposit the full sum claimed in the suit.
What orders can the court make?
- Direct prompt deposit of the bill of exchange, hundi or promissory note on which the summary suit is based.
- Specify that the document be deposited with an officer of the court.
- Stay proceedings until the plaintiff furnishes security for costs, where the court considers such an order appropriate.
The court exercises these powers in proceedings under Order XXXVII. Rule 5 does not itself determine whether the plaintiff is entitled to a decree or whether the defendant should receive leave to defend; those questions are governed by other applicable provisions, particularly Rules 2 and 3.
Practical considerations for litigants
A party seeking an order under Rule 5 should identify the instrument on which the suit is founded, explain why its deposit is appropriate, and set out the grounds for requesting security for costs or a stay. The opposing party may respond to those grounds. Any order depends on the circumstances and the court's discretion.
For example, in a summary suit founded on a promissory note, the court may direct the note to be deposited with its officer. If the court additionally requires the plaintiff to furnish security for costs, it may stay proceedings until that condition is met. This example illustrates the rule; it is not a statement that such orders must be passed in every case.
Related provisions of Order XXXVII
Rule 1 identifies the courts and classes of suits covered by summary procedure. Rule 2 deals with institution of summary suits. Rule 3 governs appearance and leave to defend. Rule 4 concerns setting aside decrees in special circumstances. Rule 6 concerns noting expenses for dishonoured instruments, while Rule 7 provides for ordinary procedure except where Order XXXVII states otherwise.
Frequently asked questions
Is deposit of the original instrument mandatory?
No. Rule 5 says the court may order deposit. Whether an order is appropriate depends on the proceeding and the court's assessment.
Can the court stop a summary suit until costs are secured?
Yes. Rule 5 permits a stay of all proceedings until the plaintiff gives security for costs, if the court makes such an order.
Does Rule 5 apply to every money recovery suit?
No. It operates in proceedings under Order XXXVII and specifically refers to the bill, hundi or note on which a suit is founded. The eligibility of a suit for summary procedure is governed by Rule 1.
Legal note: The statutory text should be read with applicable High Court rules, local amendments and binding judicial decisions. This article provides general legal information, not advice on a particular case.