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IN THE HIGH COURT OF DELHI
Dinesh Kumar Sharma, J.
Rajender Singh - Appellant
Versus
Ravinder - Respondent
C.R.P. 285 of 2019 & CM Appl. 53111 of 2019 (stay)
Decided On : 21-07-2022
| Table of Content |
|---|
| 1. challenge to conditional leave based on financial means. (Para 1 , 2) |
| 2. arguments regarding modification of deposit conditions. (Para 3 , 4) |
| 3. court's take on financial capabilities of petitioner. (Para 5) |
| 4. modification of deposit requirement set by the court. (Para 6) |
| 5. conclusion and disposal of the petition. (Para 7) |
JUDGMENT
Dinesh Kumar Sharma, J. (Oral)
1. Present petition has been filed challenging the order dated 04.09.2019 in suit bearing No.CS 76394/2016 titled as Sh. Ravinder vs. Rajender. The learned Trial Court has granted conditional leave to defend subject to the deposit of Rs.7 lakhs.
2. Learned counsel for the petitioner submits that the petitioner is a Safai Karamchari and has no means to deposit Rs.7 lakhs. Learned counsel for the petitioner has submitted that the facts of the case are very peculiar in nature as the respondent/plaintiff is also a government servant and has stated to have extended the loan amount in cash.
3. Learned counsel for the petitioner submits that taking into account the totality of facts and circumstances of the case, the order dated 04.09.2019 may be modified to the extent that the condition of Rs.7 lakh is waived.
4. Learned counsel for the respondent has vehemently opposed the same. He has submitted that a bare perusal of the impugned order dated 04.09.2019 would indicate that the petitioner had issued a cheque in discharge of the liability and therefore now he cannot wriggle out of the loan and say that the loan was not given to him. Learned counsel for the respondent has submitted that the petitioner may be directed to deposit some amount of money so as to secure the interest of the respondent.
5. Learned Trial Court taking into account the facts and circumstances of the case had granted conditional leave to defend subject to the deposit of Rs.7 lakhs, i.e., 50% of the claim amount. However, learned counsel for the petitioner has submitted that he is not in a position to pay this amount.
6. Taking into account the totality of facts and circumstances of the case, let the petitioner deposit a sum of Rs.3,50,000/-. The impugned order dated 04.09.2019 is modified to the extent that the leave to defend stands granted subject to the deposit of Rs.3,50,000/- in the shape of an FDR in the name of this Court which shall be renewable periodically till the decision of the case. The FDR be deposited by 30.09.2022.
7. Accordingly, the present petition along with the pending application stands disposed of.
A court can modify conditions for leave to defend based on the litigant's financial circumstances while ensuring adequate security for the opposing party's claims.
Conditional grant of leave to defend under CPC is permissible where the court finds insufficient justification for disputing claims, recognizing that unconditional leave is typically granted when tri....
The court has the discretion to modify deposit terms based on the petitioner's financial condition without intervening under the Supervisory Jurisdiction.
The court may consider the financial incapacity of a party and the interest of justice in directing the deposit of a specified amount to contest a suit.
The court upheld that failure to comply with the deposit requirement negated the appellant's claims of fraud regarding the cheques, justifying the trial court's decree in favor of the respondent.
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....
The distinction between a disputed claim and an admitted claim in a suit filed under Order XXXVII of CPC and the condition precedent for granting leave to defend based on the admitted amount.
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