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DELHI HIGH COURT
PRATHIBA M.SINGH
Chander Pal Singh – Appellant
Versus
Shripal Singh – Respondent
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through video conferencing.
2. The present second appeal has been filed challenging the impugned judgment/decree dated 4th January, 2022 in RCA No. 29/2020 titled Chander Pal Singh v. Shripal Singh passed by the Ld. ADJ-01 (East) KKD/Delhi (hereinafter "Appellate Court"). Vide the said order, the appeal against the judgment/decree dated 17th August, 2020 in Suit No. 670/2019 titled Shri Pal Singh v. Chandra Pal Singh passed by the CJ/East/KKD (hereinafter "Trial Court") has been dismissed.
3. The background of the case is that a summary suit seeking recovery of Rs.2 lakhs along with interest was filed by the Respondent/Plaintiff (hereinafter "Plaintiff") before the Trial Court. The said suit under Order XXXVII CPC was based on a cheque of Rs.2 lakhs bearing no.812818 dated 29th October, 2016 which was stated to have been given in repayment of a friendly loan given by the Plaintiff to the Appellant/Defendant (hereinafter "Defendant"). In the leave to defend application, the Defendant claimed that the signatures on the cheque are admitted, however, the said cheque was blank when it was issued to one Mr. Prem Singh
Defendants in summary suits must demonstrate a substantial defense or genuine triable issues to be granted leave to defend; mere allegations without credible substantiation are insufficient.
The Defendant's defense must be substantial and likely to succeed to be entitled to leave to defend. A defense found to be moonshine, vexatious, and frivolous does not entitle the Defendant to leave ....
Where the instrument has been obtained from its lawful owner, or from any person in lawful custody thereof, by means of an offence or fraud, or has been obtained from the maker or acceptor thereof by....
The presumption under Section 139 of the Negotiable Instruments Act applies when a person voluntarily hands over a cheque, and the Plaintiff must provide necessary details of consideration in the Pla....
Partners' liability for acts done before dissolution of a partnership firm and the admissibility of a defense based on a dishonored cheque reflecting admitted liability.
The main legal point established in the judgment is the court's discretion to grant conditional leave to defend based on the defendant's disclosure of a fair and reasonable defense, ensuring a delica....
Defendants failed to present a viable defense; allegations of collusion were unsubstantiated and deemed illusory, warranting denial of leave to defend under Order XXXVII of the CPC.
The main legal point established in the judgment is that the grant of unconditional or conditional leave to defend is dependent upon the facts and circumstances of each case, and recent Supreme Court....
The court established that a defendant must present a substantial defense to avoid summary judgment; mere assertions without evidence do not suffice.
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