The claim for interest without a written contract does not allow a suit to be considered under Order 37 of the Civil Procedure Code, 1908.

JUDGMENT :

(J. C. Doshi, J.)

1. This common judgment governs the disposal of above captioned Special Civil Applications as both the Special Civil Applications arise from selfsame order passed below Exh.20 passed in Commercial Civil Suit No.3 of 2021, whereby the learned Principal Senior Civil Judge, Karjan partly allowed the application for leave to defend filed by the Posco Poggenamp Electrical Steel Pvt. Ltd. (in short “Posco”) and permitted to contest the civil suit on condition to deposit Rs.3 crore within a period of 8 weeks from the date of the order.

2. At the request of learned advocates for both the sides and in the facts and circumstances of the case, both the petitions are taken up for hearing.

3. The facts which is necessary to decide and dispose of both the petitions can be tersely narrated thus:-

3.1 TBEA Energy (India) Pvt. Ltd. (in short “TBEA”), the company registered under the Companies Act, 1958 engaged in the business of manufacturing transformer, lamination etc. It has commercial relationship with Posco. TBEA provides services to the Posco whenever Posco sells the steel to the TBEA. Posco provided services to the TBEA when TBEA sells steel to the Posco , the latter would offer its job work services and then resell the same material to the TBEA by adding margin of service charges. As some differences and disputes in business transaction arise between the Posco and TBEA, TBEA filed Commercial Civil Suit No.3 of 2021 before the learned Principal Senior Civil Judge, Karjan under Order 37 of the Civil Procedure Code, 1908 praying for a decree to the tune of Rs.35,59,47,194/- against the Posco.

3.2 As per the provisions of Order 37 of the Civil Procedure Code, 1908, summons was served to the Posco, consequently, it entered its appearance, TBEA filed summons for judgment, in response to the summons for judgment, the Posco filed application for leave to defend, which came to be exhibited as Exh.20. The learned trial Court having heard learned advocates for both the sides passed an order below application Exh.20 and permitted the Posco to raise defence albeit with the condition of depositing Rs.3 crore.

3.3 The Posco is aggrieved by the order of passing conditional leave to the defendant, whereas the TBEA is aggrieved by the order that in a conditional leave, the learned trial Court ordered to pay insufficient amount as a condition precedent for entering into the defence without considering the admitted amount, filed above captioned Special Civil Application.

4. The Posco filed Special Civil Application No.301 of 2023 under Article 227 of the Constitution of India seeking following relief:-

“(A) Your Lordship may be pleased to issue writ of certiorari or in the nature of certiorari and/or any other appropriate writ, order or direction quashing and setting aside the impugned order dated 21.10.2022 passed by the learned Principal Senior Civil Judge, Commercial Division, Karjan in Commercial Civil Suit No.3 of 2021 in the interest of justice.

(B) Pending admission, hearing and final disposal of the present petition, Your Lordships be pleased to stay the impugned order dated 21.10.2022 passed by the earned Principal Senior Civil Judge, Commercial Division, Karjan in Commercial Civil Suit No.3 of 2021 in the interest of justice.”

4.1 The TBEA filed Special Civil Application No.1034 of 2023 under Article 227 of the Constitution of India seeking following relief:-

“(B) Your Lordship may be pleased to setting aside the impugned order dated 21.10.2022 passed by the learned Principal Senior Civil Judge, Karjan below Exh.20 in Commercial Civil Suit No.3 of 2021 to the extent that it grants leave to defend to the respondent and may be pleased to reject application of the respondent seeking leave to defend the subject suit at Exh.20.

(C) In the alternative, Your Lordship may be pleased to modify the impugned order dated 21.10.2022 passed by the learned Principal Senior Civil Judge, Karjan below Exh.20 in Commercial Civil Suit No