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2023 Supreme(Guj) 1298

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANDEEP N. BHATT, J.
Jayantbhai Hasukhlal Kothari - Appellant
Versus
Hemant Champaklal Shah - Respondent
R/Special Civil Application No. 7614 of 2023
Decided on : 05-06-2023

Advocates Appeared:
For the Appellant : DHRUVIL G MERCHANT, NILESH P UDERNANI
For the Respondent: MR NV GANDHI

Headnote:(A) Constitution of India - Article 227 - Code of Civil Procedure, 1908 - Order 37 - Summary Suit - Conditional leave to defend - Petition filed challenging the order granting conditional leave to defend upon depositing 50% of the claimed amount - Court examined the issues regarding the cheque's validity and the necessity of the written contract - Assessed the legitimacy of the petitioner's claims and the evidence presented. (Paras 1, 4, 6, 19)

(B) Legal principles governing leave to defend - If a defendant raises triable issues, the court must consider the nature of the defence and the admissibility of evidence; failure to respond to demand notices undermines the ability to claim a genuine triable defence. The trial court's discretion in demanding a deposit is supported where such issues are evident. (Paras 18, 19)

(C)

Findings of Court:
The recognition of legal principles governing summary suits and conditions under which leave to defend may be granted, emphasizing the need for a legitimate defence and the authentication of the defendant's claims. The court upheld the conditional leave ordered by the trial court as just and proper. (Paras 5.1, 20)

(D)

Issues: The court addressed whether the petitioner demonstrated a legitimate triable issue to warrant unconditional leave to defend and the appropriateness of the secured deposit condition. (Paras 9, 20) (E)

Ratio Decidendi: The court validated the trial court's assessment of the petitioner's claims, highlighting that failure to adequately respond to prior notices can impact the legitimacy of a defence. The application of Order 37 was correctly interpreted to allow for conditions when warranted. (Paras 6, 20) (F)

Result: Petition dismissed. (Para 21)

Table of Content
1. petition filed under article 227. (Para 2 , 3)
2. arguments presented by the petitioner. (Para 4)
3. court's assessment and reasoning. (Para 6 , 7 , 9)
4. principles for granting leave to defend. (Para 8 , 12 , 13)
5. final conclusion and dismissal of the petition. (Para 21)

JUDGMENT :

1. At the request of learned advocates for the parties, this petition is heard and disposed of finally at admission stage. Rule. Learned advocate Mr.N.V.Gandhi waives service of notice of rule for the respondent.

2. This petition is filed under Article 227 of the Constitution of India with the following prayers:

    “26(A) The Hon’ble Court be pleased to allow the present petition.

    (B) The Hon’ble Court be pleased to call for the records and proceedings of the Special Summary Suit No.569 of 2017, pending before the Ld.City Civil Court at Ahmedabad.

    (C) The Hon’ble Court be pleased to issue a writ of certiorari or any other appropriate writ, order or direction for quashing and setting Order passed below Exh.14 and 15, in Special Summary Suit No.569 of 2017, on 26.09.2022 (Annexure `G’) by the Ld.City Civil Judge at Ahmedabad and the same is required to be allowed as prayed for.

    (D) Pending admission, hearing and final disposal of this Special Civil Application, the Hon’ble Court be pleased to stay operation, implementation and execution of the order passed below Exh.14 and 15, in Special Summary Suit No.569 of 2017, on 26.09.2022 (Annexure `G’) by the Ld.City Civil Judge at Ahmedabad.

    (E) Pending admission, hearing and final disposal of this Petition, the Hon’ble Court be pleased to stay the further proceedings in Special Summary Suit No.569 of 2017, before the Ld.City Civil Judge at Ahmedabad.

    (F) Ad-interim reliefs in terms of para `D’ & `E’ above be granted in favour of the Petitioner.

    (G) This Hon’ble Court may kindly be pleased to grant any other relief that this Hon’ble Court may deem fit in the larger interest of substantial justice.

    (H) Costs of the present Petition be awarded in favour of the Petitioner.”

3. The brief facts leading to filing of this petition are such that:

3.1 In the year, the petitioner asked for a loan for his business purposes from the respondent and the respondent provided Rs.18,00,000/- in parts to the petitioner herein in the month of February, 2014 at the office of one Mr.Pratik Majmudar. On raising the demand to return the said amount by the respondent in the month of April, 2014, the petitioner furnished a cheque for the said amount, which cheque was returned by the bank by the respondent with an endorsement of funds insufficient. The demand notices dated 15.5.2014 and 27.3.2017 were sent by the respondent for demand of Rs.18,00,000/- with interest of 18%. The respondent herein being the power of attorney holder of the original plaintiff, filed suit being Summary Suit under Order 37 of the Code of Civil Procedure, 1908 (`CPC’ for short) along with interest and other ancillary charges being a cumulative amount of Rs.27,69,010/-.

3.2 In the said suit, the summons were issued to the petitioner, who appeared before the City Civil Court. The application filed by the petitioner on 8.11.2017 for condoning the delay in filing appearance before the learned City Civil Court was allowed with cost of Rs.1000/-, which was deposited. Thereafter, the respondent filed application for summons for judgment along with the supporting affidavit. The petitioner herein filed application for leave to defend the said suit on 19.4.2018, to which the respondent filed his rejoinder affidavit. Thereafter, the petitioner also filed application on 8.8.2019 under Order 7 Rule 11 of CPC, which application was contested by the respondent by filing reply on 4.10.2019. However, as and when the application was taken up for hearing, the respondent passed an oral statement before the Ld.City Civil Court that he shall not argue and plead in his case as an advocate and based on the same, the petitioner herein did not press the said application and the en

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