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2008 Supreme(SC) 1867

S.B.SINHA, CYRIAC JOSEPH
Wada Arun Asbestos (P) Ltd. – Appellant
Versus
Gujarat Water Supply & Sewerage Board – Respondent


Judgement Key Points

Certainly. Here are the key points derived from the provided legal document:

  • The appeal concerns a judgment and order passed by a High Court that set aside a decree under Order 37 Rule 3(6)(b) of the Civil Procedure Code and remitted the matter back to the trial court, considering the amount already deposited as if it were deposited under the lease (!) .

  • The core facts involve the supply of AC pressure pipes to a respondent, with a sum due and interest claimed at a high rate due to the small scale industrial status of the appellant (!) .

  • The appellant sought a decree based on non-compliance by the respondent to deposit a conditionally granted amount, leading to a decree in favor of the appellant (!) .

  • The respondent filed an appeal, and the High Court, after exploring settlement possibilities, set aside the decree and remitted the case to the trial court, interpreting the deposited amount as compliance with the conditional leave order (!) (!) .

  • The appellant’s counsel argued that the respondent’s failure to deposit the amount should not have led to setting aside the decree, emphasizing that the decree should not have been overturned without sufficient reasons (!) (!) .

  • The respondent’s counsel contended that the appeal was properly filed under relevant procedural provisions and that the High Court’s decision to condone the lapse in deposit was justified because the deposit was made before the final judgment (!) (!) .

  • The law provides that conditional leave to defend can be granted, and if conditions are not fulfilled, a judgment in favor of the plaintiff can be passed (!) (!) .

  • An appeal against a decree under the relevant procedural rules is permissible, and errors or irregularities affecting the case’s decision can be challenged in such appeals (!) (!) .

  • The right to challenge an order granting conditional leave through revision is recognized, especially when it involves jurisdictional questions, but an appeal from the decree also encompasses challenges to such orders (!) (!) .

  • The court emphasized that a defence should not be dismissed as sham or moonshine without proper consideration of its merit, and that leave to defend should generally be granted unless the defence is clearly illusory or sham (!) (!) (!) .

  • The law permits the imposition of conditions on leave to defend to ensure speedy


JUDGMENT

S.B. Sinha, J.

1. Leave granted.

2. This appeal is directed against a judgment and order dated 31.8.2005 passed by the High Court of Judicature at Gujarat whereby and whereunder a first appeal filed by the respondent herein was allowed setting aside a decree passed in favour of the appellant herein under Order 37 Rule 3(6)(b) of the Code of Civil Procedure and remitting the suit to the trial court with the direction that the amount already deposited with the respondent by them in terms of the directions of the High Court shall be deemed to be the amount deposited under the lease granted by the trial court.

3. The basic fact of the matter is not in dispute.

Appellants supplied AC pressure pipes to the respondents. A sum of Rs.1,57,488/- became due. On the premise that as a small scale industrial unit, it cannot afford to block such a huge amount, plaintiff requested the defendants to release the said payment. The defendants having not released the outstanding payment, plaintiff became entitled to interest at the rate of 23% per annum being 5% higher than the bank rate per annum thereupon. Plaintiff filed a Summary Civil Suit in the court of Civil Judge (SD), Gandhinagar. Respond





















































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