PRADEEP NANDRAJOG, J.

1. Vide present petition under Section 115 of the Code of Civil Procedure petitioners have laid challenge to the order dated 04.02.2006 passed by the learned Additional District Judge, Delhi.

2. By and under the impugned order the learned Trial Court has dismissed an application under Order XXXVII Rule 3(5) CPC seeking leave to defend a recovery suit filed by the respondent company under Order XXXVII CPC.

3. Facts necessary to dispose of the present petition are that the respondent company filed a suit under Order XXXVII CPC against the petitioners for recovery of Rs.7,15,965/-. Suit was based upon a lease agreement dated 14.04.99 entered into between the respondent company and petitioner no.1 Major Kuldip Singh and a letter

dated 30.05.01 written by petitioner no.1 wherein he admitted his liability to pay to the respondent company.

4. Material averments in the plaint were that a lease agreement dated 14.08.95 was entered into between petitioner no.2, M/s Ritu Cosmetics, a proprietorship concern of petitioner no.1 and M/s Burlington Air Express India (P) Ltd, predecessor-in-interest of the respondent company. That vide lease agreement dated 14.08.95 petitioner no.2 agreed to let out the plot bearing no.107, Phase IV, Gurgaon, Haryana (hereinafter referred to as the plot) to M/s Burlington Air Express India (P) Ltd for a period of 22 months at a monthly rent of Rs.1,56,250/-. That clause 3(b) of the lease agreement dated 14.08.95 stipulated that M/s Burlington Air Express India

(P) Ltd shall deposit a sum equal to 12 months rent i.e. Rs.18,75,000/- with the petitioner no.2 and that said amount/deposit shall be refunded by the petitioner no.2 when M/s Burlington Air Express India (P) Ltd would deliver to it the vacant possession of the plot. That clause 3(b) further stipulated that M/s Burlington Air Express India (P) Ltd shall deposit three months advance rent Rs.4,68,750/- with the petitioner no.2 which shall adjust the same towards the rent. Clause 3(n) required the petitioner no.2 to refund the amount of security deposit and any unadjusted portion of the advance rent to the M/s Burlington Air Express India (P) Ltd on delivery of vacant possession of the plot. That accordingly M/s Burlington Air Express India (P) Ltd paid a sum of Rs.23,43,750/- (Rs.18,75,000/- towards security deposit and Rs.4,68,750/- towards advance rent) to the petitioner no.2. That receipt dated

14.09.95 was duly executed by the petitioner no.1 thereby acknowledging that he received security deposit in sum of Rs.18,75,000/- from M/s Burlington Air Express India (P) Ltd.

5. It was further pleaded that on expiration of the period of lease agreement dated 14.08.95 a fresh lease agreement dated 14.04.99 was entered into between the petitioner no.1 and the respondent company whereby petitioner no.1 agreed to let out the plot to the respondent company for a further period of 22 months. That stipulations pertaining to security deposit and advance rent were same in both the agreements save and except that as per lease agreement dated 14.04.99 respondent company was required to deposit six months advance rent with the petitioner no.1. That vide letter dated 13.11.00 respondent company gave a notice to the petitioner no.1 as required in terms of clause 3(m) of the lease agreement dated 14.04.99 intimating that it is desirous of terminating lease agreement dated 14.04.99. That on 07.02.01 respondent company delivered vacant possession of the plot to the petitioners. That on 30.05.01 petitioner no.1 issued a letter to the respondent company thereby admitting that he received a sum of Rs.23,43,750/- from the respondent company and that he owes a sum of Rs.17,06,522/- (Rs.12,38,772/- towards security deposit and Rs.4,68,750/- towards advance rent) to the respondent company. That pursuant to the letter dated 30.05.01 petitioner no.1 paid a sum of Rs.11,00,000/- to the respondent company but failed to make the balance payment of Rs.6,06,750

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