Case Note & Summary
The dispute arose from two civil appeals concerning loan recovery suits filed by Neelam M. Gurdasani and Mohandas C. Gurdasani against Ghanshyam G. Khanchandani. The original suits were based on cheques and hundies amounting to Rs. 2,50,000, with the appellant contesting the claims. The learned Single Judge allowed the appellant to defend the suits upon depositing Rs. 2,50,000, which was later affirmed by the Division Bench. However, due to non-compliance, the suits were decreed in favor of the respondents. The appellant sought to amend his special leave petitions to challenge the decree and was permitted to do so. The court noted that the appellant admitted to a loan transaction and owed Rs. 55,000 to the respondent. Consequently, the court modified the deposit requirement to Rs. 50,000, allowing the appellant to defend the suits upon this deposit. The court set aside the previous judgments and directed the Trial Court to expedite the hearing of the suits, partially allowing the appeals without costs.
Headnote
A) Civil Procedure - Right to Defend - Modification of Deposit Requirement - Code of Civil Procedure, 1908, Section 151 - The court allowed the appellant to defend the suits upon depositing Rs. 50,000, modifying the earlier requirement of Rs. 2,50,000. The court recognized the admitted loan transaction and directed the Trial Court to expedite the hearing of the suits (Paras 13-14).
Issue of Consideration
Whether the appellant could be permitted to defend the suits after depositing a modified amount and challenge previous judgments.
Final Decision
The court modified the deposit requirement to Rs. 50,000, allowing the appellant to defend the suits upon this deposit and set aside previous judgments and decrees.
Law Points
- Right to defend
- Loan repayment
- Amendment of pleadings
- Summary suit procedure
