Case Note & Summary
The dispute arose from a summary suit filed by the respondent for recovery of Rs.98,81,426.63, along with interest, against the appellant. The appellant sought unconditional leave to defend the suit, which was initially denied by the trial court. Following a consent order from the High Court, the appellant deposited Rs.20,00,000/- and was allowed to apply for leave to defend. The trial court later allowed the application but required an additional deposit of Rs.50,00,000/-, totaling Rs.70,00,000/-. The High Court upheld this decision, leading to the present appeal. The appellant contended that the High Court and trial court ignored the earlier order limiting the deposit to Rs.20,00,000/-. The respondent argued that the admitted amount exceeded Rs.90,00,000/-. The Supreme Court analyzed the trial court's discretion and the principles governing leave to defend under Order XXXVII of the CPC. It concluded that the trial court's and High Court's orders were unsustainable as they exceeded the previously established limit. The Court directed the trial court to expedite the proceedings while allowing the appeal without costs.
Headnote
A) Civil Procedure - Summary Suit - Leave to Defend - Code of Civil Procedure, 1908, Order XXXVII, Rule 2 - The trial court's requirement for a deposit of Rs.70,00,000/- was found to exceed the earlier High Court order which limited the deposit to Rs.20,00,000/-. The Supreme Court held that the trial court's and High Court's orders could not be maintained as they disregarded the earlier consent order regarding the deposit amount (Paras 6-7).
Issue of Consideration
Whether the trial court and High Court erred in requiring a deposit of Rs.70,00,000/- instead of Rs.20,00,000/- for leave to defend.
Final Decision
The Supreme Court allowed the appeal, ruling that the trial court's and High Court's orders requiring a deposit of Rs.70,00,000/- were unsustainable. The Court directed the trial court to expedite the proceedings while maintaining the deposit of Rs.20,00,000/- already made.
Law Points
- Summary Suit
- Leave to Defend
- Unconditional Leave
- Code of Civil Procedure
- 1908
- Order XXXVII
- Triable Issue
