Case Note & Summary
The Petitioner (Defendant in the suit) filed a Writ Petition under Article 227 of the Constitution of India challenging the order dated 05.07.2023 passed by the Trial Court in Summons for Judgment No. 11 of 2023 in Commercial Summary Suit No. 465 of 2022. By that order, the Trial Court granted conditional leave to defend to the Defendant on deposit of Rs. 18 lakhs within 60 days. The Defendant also challenged the subsequent order dated 18.09.2023 rejecting its review petition. The Plaintiff, M/s. Goodrich Maritime Pvt. Ltd., had filed the summary suit for recovery of Rs. 18 lakhs against the Defendant, M/s. JKC General Trading Company. The Defendant contended that the condition of deposit was onerous and that the Trial Court had erred in not granting unconditional leave to defend. The High Court, after hearing both sides, held that the Trial Court's order was not perverse or arbitrary. The Court noted that the Defendant had already deposited the amount without prejudice to its rights. The High Court found no ground to interfere with the discretion exercised by the Trial Court. The petition was dismissed, and the Trial Court was directed to proceed with the suit expeditiously.
Headnote
A) Commercial Law - Summary Suit - Conditional Leave to Defend - Order XXXVII of Code of Civil Procedure, 1908 - The Trial Court granted conditional leave to defend to the Defendant on deposit of Rs. 18 lakhs within 60 days. The Defendant challenged the condition as onerous. The High Court held that the Trial Court's order was not perverse or arbitrary and that the condition was reasonable given the commercial nature of the suit. The Defendant had already deposited the amount without prejudice. The petition was dismissed. (Paras 1-6)
B) Civil Procedure - Review Petition - Rejection - The Trial Court rejected the Defendant's review petition against the conditional leave order. The High Court noted that the review was not maintainable as there was no error apparent on the face of the record. The Defendant's challenge to the rejection was also dismissed. (Para 1)
Issue of Consideration
Whether the Trial Court's order granting conditional leave to defend on deposit of Rs. 18 lakhs is perverse or arbitrary, warranting interference under Article 227 of the Constitution of India.
Final Decision
The High Court dismissed the Writ Petition, upholding the Trial Court's order granting conditional leave to defend on deposit of Rs. 18 lakhs. The Court directed the Trial Court to proceed with the suit expeditiously.
Law Points
- Conditional leave to defend
- Commercial Summary Suit
- Order XXXVII CPC
- Deposit condition
- Perversity
- Arbitrariness
Case Details
2024 LawText (BOM) (03) 140
Writ Petition No. 13547 of 2023
Mr. Rafiq Mohammed a/w. Ms. Reshmithaa Ramachandran, Biju Joseph, Ashly K. Prakash and Bhoomika Markani i/by Lloyd & Johnson for Petitioner. Mr. Shrey Fatterpekar a/w. Mr. Anupam Dighe, Mr. Prathamesh Chavan, Ms. Sweeta Upaddhyay and Ms. Chandni Tanna, Advocates for Respondent.
M/s. JKC General Trading Company
M/s. Goodrich Maritime Pvt. Ltd.
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Nature of Litigation
Commercial Summary Suit for recovery of money
Remedy Sought
The Plaintiff sought a judgment and decree against the Defendant for Rs. 18 lakhs.
Filing Reason
The Plaintiff filed the suit for recovery of an amount allegedly due from the Defendant.
Previous Decisions
The Trial Court granted conditional leave to defend on deposit of Rs. 18 lakhs within 60 days. The Defendant's review petition was rejected.
Issues
Whether the Trial Court's order granting conditional leave to defend on deposit of Rs. 18 lakhs is perverse or arbitrary?
Whether the High Court should interfere under Article 227 of the Constitution of India?
Submissions/Arguments
The Petitioner (Defendant) argued that the condition of deposit of Rs. 18 lakhs was onerous and that the Trial Court should have granted unconditional leave to defend.
The Respondent (Plaintiff) supported the Trial Court's order and submitted that the condition was reasonable.
Ratio Decidendi
The Trial Court's discretion in granting conditional leave to defend under Order XXXVII CPC should not be interfered with unless the order is perverse or arbitrary. The condition of deposit was reasonable given the commercial nature of the suit.
Judgment Excerpts
This Writ Petition takes exception to the order dated 05.07.2023 passed by the Trial Court in Summons for Judgment No.11 of 2023 allowing conditional leave to defend the suit to the Defendant on deposit of the amount of Rs.18 lakhs within 60 days from the date of the said order.
Defendant has without prejudice to its rights and contentions filed Application dated 08.09.2023 and submitted demand draft of Rs.18 lakhs in the Registry of the Trial Court.
Procedural History
The Plaintiff filed Commercial Summary Suit No. 465 of 2022. The Defendant filed Summons for Judgment No. 11 of 2023. The Trial Court allowed conditional leave to defend on deposit of Rs. 18 lakhs on 05.07.2023. The Defendant filed a review petition which was rejected on 18.09.2023. The Defendant then filed the present Writ Petition under Article 227 of the Constitution of India.
Acts & Sections
- Code of Civil Procedure, 1908: Order XXXVII
- Constitution of India: Article 227
