JUDGMENT

1. This appeal, under Section 96 of the Code of Civil Procedure, 1908 ["the CPC"], has been filed by the appellant [defendant before the learned Trial Court], against a judgment and decree dated 11.04.2022 in CS DJ 1109/2018 ["impugned judgment"]. By the impugned judgment, the learned Trial Court has decreed a suit filed by the respondent herein, under Order XXXVII of the CPC, upon the appellant's failure to comply with the conditions upon which leave to defend was granted.

2. The respondent filed the suit before the learned Additional District Judge-01, (South East) District, Saket Courts, New Delhi on 17.07.2018 for recovery of a sum of Rs.6,00,000/-, with pendente lite and future interest at the rate of 18% p.a. from the date of filing of the suit till realization and costs[Re: Amendment of plaint].

3. The cause of action asserted in the suit was that the appellant had approached the respondent for a loan, and the respondent had lent and advanced a sum of Rs.6,00,000/- to the appellant in March 2017. The loan was to be repaid within 9 months. The appellant issued a post-dated cheque (cheque No. 444859) dated 08.12.2017, drawn on Punjab National Bank, Branch-Alaknanda, Kalkaji, New Delhi for the sum of Rs.6,00,000/- to the respondent, with the assurance that it would be honored upon presentation. However, the cheque was dishonored on 14.12.2017 due to insufficiency of funds. Despite further assurances, the appellant did not clear the loan, as a result of which the respondent issued a legal notice dated 10.06.2018. The appellant having failed to pay the amount demanded, the respondent instituted the suit.

4. Summons, in the format provided under Order XXXVII of the CPC, were issued on 10.08.2018. The appellant made an application to enter appearance in the suit on 30.11.2018, alongwith an application for condonation of delay of 5 days in entering appearance. The application for condonation of delay was allowed, upon payment of costs to the respondent, by order dated 31.05.2019.

5. On the application of the respondent, summons for judgment were issued on 03.07.2019, pursuant to which the appellant filed an application for leave to defend on 15.07.2019. In the aforesaid application, the appellant denied having taken a loan of Rs.6,00,000/- from the respondent. It was contended that the respondent has, in fact, invested Rs.5,00,000/- with the appellant, which has been duly re-paid, at the respondent's request, to one Mr. Ghanshyam Thakur. According to the appellant, two blank cheques were handed over to the respondent in connection with the aforesaid investment, one of which had been misused by the respondent and dishonored by the appellant's bankers.

6. The application for leave to defend was decided on contest by an order dated 02.03.2020. The learned Trial Court granted leave to defend, conditional upon deposit of a sum of Rs.3,25,000/- by the appellant within four weeks from the date of the order.

7. The matter was thereafter taken up on 17.09.2020, when it was recorded that the application for leave to defend had been disposed of by order dated 02.03.2020, by granting conditional leave to defend on deposit of 50% of the suit amount. It was noted that a written statement had been filed by the appellant, and received on the Trial Court's email id at 10:39 A.M. The appellant was unrepresented, but the Court adjourned the hearing for compliance of the direction with regard to deposit of amount until 27.01.2021.

8. In the written statement, the appellant, inter alia, averred as follows:

"2. That the Leave to Defend filed by the Defendant in the matter was allowed by this Hon'ble Court on 5.3.2020 and as such, the Written Statement was to be filed within 30 days thereof, i.e. on or before 4.4.2020. However, since 24.3.2020, Courts were not functioning on account of declaration of complete lockdown in the country due to COVID-19 and thus, Written Statement could not be filed during the period. It is, as such, prayed that delay, if