IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK, J.
Teleysia Networks Pvt Ltd – Appellant
Versus
Prithvi Information Solution Ltd – Respondent
R/Special Civil Application No. 4367 of 2016
Decided on : 05-01-2024
Leave to Defend - Special Summary Suit - Order-XXXVII Rule 3 Sub-clause 4 and 5 of the Civil Procedure Code - The court quashed the impugned order and directed the Trial Court to hear afresh the application, after giving proper opportunity to both sides and examining the merits and the documentary evidence on record. The Trial Court was instructed to decide the application in accordance with the provisions of Order XXXVII Rule 3 of the Civil Procedure Code, in light of the settled legal provision, and without being influenced by the observations made in the present order.
Fact of the Case:
The petitioner challenged the order granting unconditional leave to defend in a Special Summary Suit, claiming dues for the supply of goods to the respondent. The Trial Court granted unconditional leave to defend without considering the jurisdiction clause in the invoices and without recording any findings on the triable issues raised by the defendant.
Finding of the Court:
The Court found that the Trial Court's order was non-speaking, erroneous, and against the settled legal principles of law. It quashed the impugned order and directed the Trial Court to re-examine the application in accordance with the law.
Issues: The issues revolved around the grant of unconditional leave to defend in a Special Summary Suit, the consideration of triable issues raised by the defendant, and the application of Order-XXXVII Rule 3 of the Civil Procedure Code.
Ratio Decidendi: The Court emphasized that the Trial Court must consider the triable issues raised by the defendant and the documentary evidence on record before granting unconditional leave to defend. It highlighted the provisions of Order-XXXVII Rule 3 of the Civil Procedure Code and the need for a proper examination of the merits and defenses raised by the defendant.
Final Decision: The petition was allowed, and the impugned order was quashed. The Trial Court was directed to re-examine the application, considering the provisions of Order-XXXVII Rule 3 of the Civil Procedure Code and the settled legal principles, and to decide the matter expeditiously.
JUDGMENT :
1. By way of present petition, under Article 226 read with Article 227 of the Constitution of India, the petitioner has challenged order dated 27.1.2016 passed below Exh. 13 application in Special Summary Suit No. 6 of 2012 by the learned 2nd Additional Senior Civil Judge, Ahmedabad (Rural), at Mirzapur, whereby the Trial Court has granted unconditional leave to defend application filed by the respondent - original defendant.
2. The case of the petitioner is that the petitioner has entered into business transaction with the respondent-original defendant, as the petitioner is engaging in the business of different kind of Teleservices testing and measurement on rental basis to different information Techno Savvy companies at different places including Gujarat and across India. The petitioner has supplied certain goods to the original defendant - respondent, in response to the work order placed by the original defendant - respondent herein and for that number of invoices amounting to Rs.1,05,60,410/-, were issued and at the end, the debt balance was Rs.47,07,704/-. For the said supply of goods, the plaintiff has raised the demand of dues and the defendant has failed to pay the due amount and therefore, the plaintiff issued legal notice to the respondent original defendant on 15.9.2011. In response thereto the original defendant has paid an amount of Rs.13,30,597/- on 16.11.2011 and lastly after deduction of Rs.13,30,597/- towards the credit, TDS and other deductions, Rs.33,77,107/- was due amount.
2.1 Thereafter, the respondent - original defendant has not paid any amount and therefore, the plaintiff has filed Special Summary Suit in the Court of learned Senior Civil Judge, Ahmedabad (Rural) and demanded Rs.33,77,107/- which is remained due and payable to the plaintiff against the supply of goods. In the said suit, summon was issued to the respondent-original defendant and the same was served upon the respondent-original defendant. In response thereto, the respondent-original defendant has filed written statement below Exh.13 and prayed leave to defend. After considering the submission made on behalf of the concerned parties, Trial Court has passed order which is impugned in present petition. Paragraph No.6 of the said order passed below Exh.13 in Special Summary Suit No.6 of 2012 reads as under:-
-:ORDER:-
(1) Application of Defendant for unconditional leave to defense vide Exh.13 is hereby allowed.
(2) This suit be registered as Special Civil Suit and be proceeded accordingly."
3. Feeling aggrieved and dissatisfied with the impugned order, the original plaintiff-petitioner herein has preferred this petition, on the ground that the Trial Court has without assigning any justifiable reasons and submissions passed non-speaking order, whereby unconditional leave to defend was granted in favour of the defendant.
4. In present petition, the co-ordinate bench of this Court has issued notice to the respondent on 21.3.2016. Though, notice was served upon the respondent, the respondent has chosen not to remain present before the Court and therefore, the co-ordinate bench of this Court had issued rule on 1.12.2016 and granted interim relief in terms of paragraph No. 7(c). The said paragraph No.7(c) reads as under:-
5. Now, after almost eight y
Point of Law - Court has considered the issue and confirmed the order passed by the learned trial court granting the application for leave to defend conditionally. All the rights and contentions of t....
A defendant in a summary suit is entitled to leave to defend if they raise plausible triable issues, even if the defense is not strong.
A defendant must establish a substantial or triable issue to gain unconditional leave to defend under Order XXXVII; conditional leave can be issued if there are serious doubts regarding the genuinene....
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.
Leave to defend may be conditional if doubts exist about the genuineness of the triable issues raised by the defendant.
The main legal point established in the judgment is that leave to defend should not be refused unless the defendant's contentions are frivolous and do not raise any triable issue. The court emphasize....
The main legal point established in the judgment is the entitlement of the defendant for unconditional 'leave to defend' under Order 37 Rule 3 (5) CPC based on the existence of a substantial defense ....
A defendant raising a triable issue is entitled to unconditional leave to defend in a summary suit, and courts should avoid imposing harsh conditions that may hinder the defendant's ability to contes....
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