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.

JUDGMENT

Gaurang Kanth, J. (Oral)

The hearing has been conducted through hybrid mode (physical and virtual hearing).

C.M. No. 50323/2022 (delay in re-filing)

1. This is an application filed by the appellant seeking condonation of delay of 35 days in re-filing the appeal.

2. For the reasons stated in the application, the application is allowed. The delay of 35 days in re-filing the appeal is condoned.

3. The application stands disposed of.

RFA 595/2022 and C.M. No. 50322/2022 (stay)

4. The appellant (original defendant) in the present appeal is challenging the impugned judgment and decree dated 11.07.2022 passed by the learned ADJ-08/West, Tis Hazari Courts, Delhi in Civ DJ 269/18 titled Pradeep Kumar Versus Amandeep Singh.

5. The learned Trial Court, vide order dated 22.09.2021, granted conditional leave to the appellant to defend the suit filed by the respondent (original plaintiff) under Order XXXVII of Civil Procedure Code, 1908 by depositing Rs.2 lakhs. However, the appellant failed to deposit the said amount and filed review application under Section 114 of Civil Procedure Code, 1908 for modification of order dated 22.09.2021. The learned Trial Curt, vide order dated 04.06.2022, was pleased to dismiss the said review application and granted 15 days time to the appellant to deposit Rs.2 lakhs. The appellant failed to deposit the said amount and hence, vide the impugned judgment dated 11.07.2022, the learned Trial Court was pleased to decree the suit filed by the respondent herein.

Facts relevant for disposal of the present appeal

6. It is the case of the respondent that the parties were known to each other for quite some time and were having friendly relationship with each other. The appellant was in need of money and hence, he approached the respondent for a loan of Rs.4 lakhs in the month of July, 2014. The respondent advanced a loan of Rs.4 lakh to the appellant. The appellant agreed to repay the said loan with 18% interest. The appellant also handed over a post dated cheque bearing No. 198308 dated 29.07.2015 drawn on Axis Bank Ltd. Kirti Nagar Branch, New Delhi, for an amount of Rs.4 lakhs to the respondent towards repayment of the loan. The respondent presented the said cheque for encashment, however, the same was returned with remark `account closed'. The respondent informed the appellant about dishonour of the cheque and requested for repayment of the loan. The respondent issued legal notice dated 07.09.2015 and thereafter, initiated proceedings under Section 138 of the Negotiable Instrument Act. The said matter is still pending before the learned Metropolitan Magistrate, Tis Hazari Courts. In order to recover the loan amount, the respondent filed the present suit under Order XXXVII of Code of Civil Procedure, 1908. The appellant filed an application seeking leave to defend.

7. It is the case of the appellant that his father Sh. Sukhdev Singh S/o Sh. Ram Singh took a loan of Rs.80,000/- from one Sh. Ashok Kumar, R/o Subhash Nagar, New Delhi in and around 2009. Out of the said amount, Rs.31,000/- was paid in cash and Rs.49,000/- was paid through cheque of Ms. Nidhi Arora. In order to secure the said loan, father of the appellant handed over the original title documents of his property alongwith few blank cheques of the appellant to one Sh. Subhash Arora and Sh. Pradeep Kumar. Cheque No. 198308 was also one amongst the series which were handed over to Sh. Subhash Arora and Sh. Pradeep Kumar.

8. It is further the case of the appellant th