IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
B.N. KARIA, J.
GLACIER ALUMINIUM PRIVATE LIMITED - Appellant
Versus
GURU RAJENDRA METALLOYS INDIA PVT. LTD. - Respondent
SPECIAL CIVIL APPLICATION NO. 8873 of 2017
Decided On : 14-09-2021
Civil Procedure Code,1908 – Order XXXVII Rule 2 Section 20(c) – Recovery of amount – Claim petition - Respondent/plaintiff filed a suit to recover an amount from defendant/petitioner before City Civil Court - After filing of suit and before service of summons on defendant as per the averments made by petitioner/defendant, petitioner made payment through RTGS from Silvasa which according to petitioner was full and final settlement - Petitioner raised several triable issues including issues of territorial jurisdiction, issue of interest which was claimed without any agreement and discharged by full and final settlement - Whether it raises a triable issue or not, Court may impose conditions in granting leave to defend – Held, It was held that learned Judge has materially erred in granting conditional leave to defend suit to defendants on depositing 50% of suit claim - Here of course, in invoices produced by plaintiff in the suit, condition was blank in respect of interest which was to be charged on all accounts unpaid after particular dates - Considering peculiar facts of present case, this court is of view that impugned order requires for modify in respect of amount as ordered by trial court directing the defendants to deposit - This court is of view that the petitioner shall direct to deposit before the trial court within a period of four weeks from date of passing of this order - Accordingly this petition stands partly allowed.
JUDGMENT :
1. Rule. Learned advocate Mr. Tarak Damani waives service of notice of rule for and on behalf of the respondent.
2. By preferring present petition, the petitioner has challenged the common order dated 31st March 2017 passed by the learned City Civil Court, Ahmedabad No. 26 below applications Exh. 21 and 27 in Summary Suit No. 1916 of 2014 granting conditional leave to defend to the petitioner/original defendant on condition that petitioner shall deposit Rs. 36,23,853/- within six months before the Trial Court.
3. Brief facts of the present case may be summarized as under:
4. Heard learned advocates for the respective parties.
5. It was submitted by learned advocate for the petitioner that however trial court has no territorial jurisdiction to hear and decide the suit, as no registered office or business within the local jurisdiction of the Ahmedabad City Civil Court was there, the trial court has committed grave error in granting conditional permission to leave to defend the suit. It was further submitted that the payment of Rs. 2 lacs was also made by the petitioner, and thereafter Rs. 2 lakhs through RTGS from Silvasa towards the full and final settlement. That, the impugned order passed by the trial court is contrary to the law and evidence on record, however, trial court has concluded that there are triable issues of territorial jurisdiction. That, the trial court has imposed such condition with regard to the payment of decree amount which is not permissible. While referring the invoices especially condition No. 3 produced at page no.31 of this petition, it was argued that interest @ 15% p.a. will be charged on all accounts unpaid after (NIL)days. That, there was no condition to charge the interest as observed by the learned trial court. That, in the affidavit in reply of the respondent in para 4.6 , it is stated that as per the agreed terms between the parties herein, the petitioner company was to make payment for the material within 30 days of the receipt of the material. That, in invoice there was no date fixed for making payment of the material by the petitioner. That, unconditional leave to defend was required to be granted by the trial court. That, once the trial court has concluded that there are triable issues, the court cannot impose such condition with regard to payment into court or furnishing of the security. In support of his arguments, learned advocate for the petitioner has relied upon the judgment reported in (2006) 8 SCC 25; (2017) 1 SCC 568 and judgment passed by learned division bench of this court in Special Civil Application No. 6350 of 2017. It is further argued that issue of interest is also triable issue and learned Judge has materially erred in granting conditional leave to defend the suit to the present petitioner. Hence, it was requested to allow this petitioner by quashing the impugned orders.
6. Per contra, learned advocate for the respondent has supported the impugned orders passed by the trial court. Referring the copy of the plaint, it is submitted that as per the three invoices as shown i
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.