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2018 Supreme(HP) 2011

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Sureshwar Thakur, J.
Himachal Cooperative Non Agriculture Thrift And Credits Society Limited - Appellant
Versus
Raj Kumar Mittal & Anr. - Respondents
Original Miscellaneous Petition No. 177 of 2018; Civil Suit No. 9 of 2018
Decided On : 20-11-2018

Advocates Appeared:
B.C. Negi, Adv., N.K. Bhalla, Adv., Dalip K Sharma, Adv., P.S. Goverdhan, Adv.

The main legal point established in the judgment is the requirement for the defendant to establish a reasonable, fair, and bonafide defense to be granted leave to defend a summary suit.

Headnote:

Order 37 Rule 3 - Summary Suit - Code of Civil Procedure - [Order XXXVII] - [Section 72 of the Himachal Pradesh Cooperative Societies Act, 1968] - The court discussed the provisions of Order XXXVII of the Code of Civil Procedure and Section 72 of the Himachal Pradesh Cooperative Societies Act, 1968. The key legal provisions were interpreted to determine the grant of leave to defend the suit and the maintainability of the suit. The court's decision was influenced by the defendant's failure to establish a reasonable, fair, and bonafide defense, and the absence of evidence to support their contentions.

Fact of the Case:

The plaintiff filed a summary suit seeking the recovery of a dishonored cheque amount. The defendants applied for leave to defend the suit, contesting the maintainability of the suit and the authenticity of the cheque.

Finding of the Court:

The court found that the defendants failed to establish a reasonable, fair, and bonafide defense. The statutory notice contemplated in Section 72 of the Cooperative Society Act remained unserved, but the court deemed the leave grantable to the plaintiff.

Issues: The issues included the authenticity of the dishonored cheque, the maintainability of the suit under Section 72 of the Cooperative Society Act, and the defendants' failure to establish a reasonable defense.

Ratio Decidendi: The court decided that the defendants' defense was illusory and failed to satisfy the conditions for granting leave to defend the suit. The absence of evidence and the failure to serve the statutory notice led to the grant of leave to the plaintiff.

Final Decision: The application was disposed of in favor of the plaintiff, granting leave to sign the judgment.

JUDGMENT

Sureshwar Thakur, J. - This order will dispose of an application, cast under the provisions of Order 37 Rule 3 (5) of the Code of Civil Procedure, as, moved before this Court, by the defendants/applicants(hereinafter referred to as the "defendants"), wherethrough, they seek hence leave to defend the summary suit, instituted by the plaintiff/nonapplicant (hereinafter referred to as the "plaintiff").

2. The plaintiff has instituted the instant suit, cast under the provisions of Order XXXVII, of the Code of Civil Procedure, seeking therethrough, the, recovery of suit amount. An averment is embodied in the plaint, qua the plaintiff being a duly registered cooperative Society, registration whereof, is, entered at Sr. No. 687, in the apt records, maintained by the Registering Authority concerned. The plaint has been instituted by the duly authorized representative of the society. The suit has been drawn, on, anvil of cheque bearing No. 644323 of 6.6.2016, drawn on State Bank of India, Solan, embodying therein a sum of Rs. 45,50,000/-, cheque whereof, upon, its presentation before the Bank concerned, was refused to be honoured. Photocopy of the Cheque is appended with the plaint as Annexure P3. In sequel thereto, the apt statutory notice was served, upon, the defendants. Notice whereof, is, borne in Annexure P5, and, upon the defendants not meteing compliance thereto, a complaint embodied, in Annexure P6, was, instituted before the Court of Judicial Magistrate, Ist Class, (II), Solan. Clause (a) of Paragraph 5 of the plaint, details the amount(s) taken as loan, by the defendants, from the plaintiff.

3. Succinctly, the dishonored cheque borne in Annexure P3, is, espoused to be carrying hence sum(s) of money arising, towards a legally enforceable debt. The plaintiff, through the instant plaint, cast under the afore provisions, has, upon Annexure P7, Annexure whereof comprises a notice issued by the defendants, hence, reared a vehement contention, before this Court, (i) that the recitals borne therein, being, readable as admission(s) of the defendants, vis-a-vis, issuance, of, the afore dishonored negotiable instrument, borne in Annexure P3, being towards a legally enforceable debt, hence, a verdict rather summarily decreeing the plaintiff''s suit being pronounced, upon, the plaintiff.

4. When notice was served, upon the, defendants, the instant application, cast under the provisions, of, Order 37 Rule 3(5) of the Code of Civil Procedure, stood instituted before this Court, by the defendants, wherethrough, they seek leave of the Court, to, defend the suit, and, obviously espousals'' contrary to the ones embodied in the plaint, stand reared therein. In paragraph 2 of the afore OMP, a contention is reared qua some borrowings, being made by the defendants, from the plaintiff society, and, the entire borrowings being liquidated, by the defendants, and, also disclosures rather holding concurrence, with, the afore averment, hence, also occur in the apt statement, of, account prepared up to 31.3.2016. A further averment is borne therein qua liquidation of the loan amount being made, either, through RTGs or through cheques, hence, per se, the defendants contest, that, the apt liquidation not occurring through cash payments. A denial is borne in afore OMP qua the amount embodied in the cheque aforesaid, being, not realizable, from, the defendants, hence, the suit being not maintainable, for, its being hence summarily decreed.

5. A contention, visavis, the suit being not maintainable, within, the ambit, of, Section 72 of the Himachal Pradesh Cooperative Societies Act, 1968, is, also reared, conspicuously qua the condition setforth therein, remaining uncomplied with, by, the plaintiff. Further more, the afore dishonored cheque, is, contended by the defendants to be a part of a series of blank security cheques, issued, by the defendants, to, the plaintiff before March, 2016. Moreover, it is also contended, that, the issuance thereof being u

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