MUKUNDAKAM SHARMA, J.

( 1 ) BY this judgment and order, I propose to dispose of the application, which is filed by the defendant praying for leave to defend the suit filed by the plaintiff, which is registered as IA No. 9245/2001.

( 2 ) THE suit is filed by the plaintiff praying for a decree against the defendant for recovery of an amount of Rs. 37,92,927. 47p along with pendente lite and future interest and cost. The plaintiff is engaged in the business of manufacture and supply and marketing of audio cassettes and CDs. The defendant, who is the proprietor of M/s Shiva Electronics, is engaged in the business of trading and selling the said products and other products.

( 3 ) IN 1994, the plaintiff appointed the defendant as a dealer of the products manufactured and marketed by the plaintiff. It is stated in the plaint that subsequent to the said appointment, products of the plaintiff were duly supplied by the plaintiff to the defendant against invoices raised at mutually agreed price and rates. It is alleged that the defendant, however, failed to adhere to the agreed terms of payment and began making only part account payments whereupon a running account came to be established. It is also alleged that on 31. 3. 2000, a sum of Rs. 23,59,908. 19 was due and payable by the defendant to the plaintiff as against which on 30. 4. 2000, the defendant made an on account payment of Rs. 8,00,000/- vide cheque No. 658505 drawn on Canara Bank, followed by a further on account payment of Rs. 4,00,000/- vide cheque No. 658517 drawn on Canara Bank. However, both the aforesaid cheques were returned unpaid by the bank upon presentation. It is further alleged that during the financial year 1999-2000, the plaintiff supplied to the defendant a number of consignments of the products which were duly received and accepted by the defendant and that after receipt of the said consignments and after settling accounts and adjusting credit under credit notes for the products returned by the defendant and also adjusting the payments made by the defendant, the defendant owed to the plaintiff a sum of Rs. 37,92,927. 47p. It is also alleged that in discharge of the said liability, the defendant issued in favour of the plaintiff various cheques numbering seven towards payment of the amount owed to the plaintiff being Rs. 37,92,927. 47p. However, the aforesaid cheques when sent for collection by the plaintiff, six cheques for the value of Rs. 2,00,000/- each were returned back unpaid to the plaintiff with the remarks "insufficient funds" on 2. 8. 2000 and the last cheque drawn on Vaish Co-op. New Bank Ltd. for Rs. 25,92,927. 47 was returned back by the defendant s bankers on 9. 8. 2000 with the remarks "account closed". Consequently, the present suit was filed under the provisions of Order XXXVII of the Code of Civil Procedure seeking for the aforesaid reliefs.

( 4 ) THE defendant entered appearance upon which summons for judgment were taken out. On service of of the aforesaid summons for judgment, the defendant filed the aforesaid application under Order XXXVII Rule 5 CPC praying for grant of leave to defend the present suit. The pleadings having been completed in respect of the said application, the same was listed for arguments before me and accordingly, I heard the counsel appearing for the parties. I have also perused the records to which reference was made by the counsel appearing for the parties during the course of their submissions. In the light of the said submissions of the counsel for the parties and the documents on which reliance was placed by the counsel, I proceed to give my reasoned decision on the pleas raised in the aforesaid application.

( 5 ) IT is submitted by the counsel appearing for the defendant that the cheque dated 8. 8. 2000 shown to have been issued in favour of the plaintiff for an amount of Rs. 25,92,927. 47p was actually given and handed over to the plaintiff company sometime around December 1997 totally blank i. e. without menti

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