A defendant is entitled to get leave to defend the suit if he has a good defence to the claim on its merit.

( 1 ) IN this revision petition directed against a composite order rejecting application for leave to defend and decreeing the suit under 0. 37 Code of Civil Procedure, two following questions arise for decision :

(A) Whether the defendant ( i) who claimed set off/adjustment before filing the suit by making a request to sell goods pledged with the plaintiff - respondent; and (iii) who claimed adjustment of the amount of the value of the goods pledged, insured and kept under lock and key of the plaintiff-bank, which were subsequently burnt, is entitled to get leave to defend the suit. ?

(B) Whether revision petition itself is not maintainable in view of the composite order of rejection of application for leave to defend, followed by passing of decree, as an appeal could be filed ?

( 2 ) RELEVANT facts are as under : laxmi Commercial Bank Ltd. , plaintiff/ respondent filed a suit for recovery of Rs. 17,000. 00 under Order 37, C. P. C. According to the Bank s case, on the request of defendant/ revision petitioner, cash credit facility to the limit of Rs. 12,000. 00 (bearing interest @ 9% above the RBI s rate of interest with a minimum of 17% per annum) was given, on execution of various documents, by the defendant / revision petitioner on 27th February, l980. A sum of Rs. 17,000. 00 was found due against the petitioner on 30th November, 1991. As the defendant/ petitioner failed to pay the same despite notice, a suit under Order 37, C. P. C was filed by the plaintiff-respondent Bank.

( 3 ) THE defendant filed an application for leave to defend the suit. It was contended that in February,- 1980 only a sum of Rs. 12,000/was due. Five cases containing goods worth Rs. 18,515. 00were pledged in February, 1980. The defendant requested that these pledged goods should be sold by the Bank to clear the account. But the Bank failed to sell the goods. As such, the defendant/petitioner was not liable to pay any interest after February, 1980. At the time of filing of the application for leave to defend the value of the pledged goods would have been about Rs. 30,880. 00. These pledged goods were allegedly destroyed by fire in April 1993. Accordingly, the defendant/ petitioner claimed that he was entitled to get Rs. 30,880 / - as the price of the aforesaid goods. The defendant/petitioner expressed his willingness to pay a sum of Rs. 12,000/ - in case he got back their pledged goods or price thereof amounting to Rs. 30,880. 00.

( 4 ) THE respondent-Bank in their reply to the application for leave to defend admitted burning of the pledged goods. But they claimed that the Bank could not be blamed for it as they had taken all due care and fire was on account of acts beyond their power and control. Claim had been lodged with the Insurance Company. The Bank further claimed that a notice of demand demanding Rs. 15,860. 00 was sent in August, 1981 through Baxi Vikram Singh Sahni, Advocate. In reply to the said notice, petitioner/defendant admitted the claim of the Bank regarding a sum of Rs. 15,860/ - and promised to pay the same in monthly instalments. The respondent-Bank also contended that the defendant was at liberty to have the pledged goods redeemed after paying the amount claimed by the plaintiff/ respondent.

( 5 ) THE learned trial Court in view of the admitted part of the plaintiff s case rejected the application for leave to defend and took the view that the defendants had failed to raise any triable issue which needed investigation and decreed the suit for recovery of Rupees 17,000/- with cost and pendente lite and future interest @ Rs. 17% per annum till realisation.

( 6 ) THE present revision petition has been filed on the ground that admittedly the pledged goods were destroyed in fire in the godown of the plaintiff and the plaintiff-Bank had not only lodged a claim with the Insurance Company but had also realised a claim of Rs. 9,720/ -. According to the petitioner, in April, 1993 the value of pledged goods was Rs. 30,880/ -. The insurance cla

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