Supreme Court Dismisses Special Leave Petition in Civil Suit for Recovery of Dues — No Triable Issues Found. The court found that the allegations made by the Petitioner regarding the cheque were without foundation and did not disclose any triable issue.

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Case Note & Summary

The dispute arose from a civil suit filed by the Respondent for recovery of dues amounting to Rs.6,68,513/- based on a dishonoured cheque issued by the Petitioner. The Petitioner had purchased iron sheets on credit from the Respondent, acknowledging a liability of Rs.4,42,724/-. A cheque for Rs.3,50,000/- was issued but later dishonoured, prompting the Respondent to file Suit No.57 of 2008. The Petitioner sought leave to defend the suit, claiming the cheque was given as security and had been altered. The trial court dismissed the application, leading to the present Special Leave Petition. The Petitioner argued that the cheque's validity and the receipt of goods were triable issues, while the Respondent contended that the Petitioner’s claims were mere denials without evidence. The court examined the cheque and found no signs of alteration, concluding that the Petitioner failed to establish any triable issue. The court emphasized that the summary procedure under Order XXXVII is meant for clear and undisputed claims, and the defence raised by the Petitioner was deemed implausible. Ultimately, the Special Leave Petition was dismissed without costs.

Headnote

A) Civil Procedure - Leave to Defend - Dismissal of Application - Code of Civil Procedure, 1908, Order XXXVII Rule 3 - The court found that the allegations made by the Petitioner regarding the cheque were without foundation and did not disclose any triable issue. The court upheld the dismissal of the application for leave to defend, affirming that the defence raised was not plausible and lacked corroborative evidence (Paras 1-10).

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Issue of Consideration

Whether the learned District and Sessions Judge, Delhi, rightly dismissed the Petitioner’s application for leave to defend the suit filed by the Respondent.

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Final Decision

The Supreme Court dismissed the Special Leave Petition, affirming the dismissal of the Petitioner’s application for leave to defend the suit, finding no triable issues.

Law Points

  • Order XXXVII
  • Code of Civil Procedure
  • 1908
  • dishonour of cheque
  • triable issues
  • summary procedure
  • leave to defend
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Case Details

2010 LawText (SC) (08) 13

Special Leave Petition(C) No.25144 of 2009

2010-08-04

ALTAMAS KABIR, A.K. PATNAIK

Ms. V.K. Enterprises

M/s. Shiva Steels

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Nature of Litigation

Civil suit for recovery of dues based on a dishonoured cheque.

Remedy Sought

Petitioner sought leave to defend the suit.

Filing Reason

Respondent filed suit due to non-payment of dues after cheque dishonour.

Previous Decisions

The application for leave to defend was dismissed by the District and Sessions Judge.

Issues

Whether the dismissal of the application for leave to defend was justified. Whether the Petitioner raised any triable issues.

Submissions/Arguments

Petitioner argued that the cheque was given as security and had been altered. Respondent contended that the Petitioner’s claims were mere denials without evidence.

Ratio Decidendi

The court held that the defence raised by the Petitioner did not disclose any plausible triable issue and that the summary procedure under Order XXXVII is intended for clear and undisputed claims.

Judgment Excerpts

The short point involved in this Special Leave Petition is whether the learned District and Sessions Judge, Delhi, had rightly dismissed the Petitioner’s application under Order XXXVII Rule 3. The allegations made in the application filed by the Petitioner under Order XXXVII Rule 3 C.P.C. were without any foundation.

Procedural History

The Respondent filed Suit No.57 of 2008 for recovery of dues. The Petitioner filed an application under Order XXXVII Rule 3 C.P.C. for leave to defend, which was dismissed by the District and Sessions Judge. The Petitioner then filed a Special Leave Petition in the Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXXVII Rule 3, Section 151
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