Case Note & Summary
The petitioner, Smita Yashwant Lipte, filed a writ petition challenging an order passed by the learned Civil Judge, Senior Division, Chandrapur, in Summary Suit No. 9 of 2009. The trial court had granted leave to defend under Order 37 Rule 3 CPC but imposed a condition that the petitioner deposit Rs. 2,50,000/- within 15 days. The petitioner failed to deposit the amount, and her defence was struck off. The respondent, Suryakant Sadashiv Arade, had filed the summary suit for recovery of money based on cheques. The petitioner admitted to having taken a hand loan of Rs. 4,00,000/- and that Rs. 2,30,000/- was outstanding. She also claimed that the cheques were blank signed and kept with her husband. The trial court found that there was a triable issue and that the suit was not prima facie false or vexatious. However, it imposed the condition of deposit. The High Court held that the condition was onerous and not warranted, as the defendant had raised triable issues and admitted part of the claim. The High Court set aside the condition and granted unconditional leave to defend. The petition was allowed, and the trial court was directed to proceed with the suit.
Headnote
A) Civil Procedure - Summary Suit - Leave to Defend - Order 37 Rule 3 CPC - Conditional Leave - The trial court granted leave to defend subject to deposit of Rs. 2,50,000/-. The High Court held that the condition was onerous and not warranted as the defendant had raised triable issues and admitted part of the claim. The condition was set aside and leave to defend was granted unconditionally. (Paras 2-5) B) Negotiable Instruments - Blank Signed Cheques - Section 20 Negotiable Instruments Act, 1881 - The trial court observed that giving a blank signed cheque amounts to giving authority to the payee to complete the blanks. The High Court did not disturb this observation. (Para 3)
Issue of Consideration
Whether the trial court was justified in imposing a condition of depositing Rs. 2,50,000/- while granting leave to defend in a summary suit under Order 37 CPC.
Final Decision
The High Court allowed the writ petition, set aside the condition imposed by the trial court, and granted unconditional leave to defend. The trial court was directed to proceed with the suit in accordance with law.
Law Points
- Order 37 Rule 3 CPC
- Leave to Defend
- Conditional Leave
- Triable Issue
- Summary Suit
- Negotiable Instruments Act
