The order of the Court below imposing a condition of furnishing security for grant of leave to defend the suit is not sustainable. The learned Judge has overlooked the provisions or Order XXXVII of the Civil Procedure Code. He has obviously forgotten that the question to be decided for an application for leave to defend is whether there is a triable issue in the suit or whether the claim made by the defendant is a moonshine. The learned Judge without taking into account any of the relevant circumstances has granted leave on condition that the petitioner should furnish security for the amount claimed in the suit on or before a particular date.

2. The order deserves to be set aside. Learned counsel for the respondent places reliance on the judgment of the Supreme Court in Messrs. Machelee Engineering and Manufacturers v. Messrs. Basic Equipment Corporation, 1977 AIR(SC) 577, 1976 (4) SCC 687, 1977 (1) SCR 1060, 1976 UJ 953, 1985 AIR(Karnataka) 82. The Supreme Court set out the following principles to be followed while considering the grant of leave to defend (at p. 580 of AIR) :-

"(a) If the defendant satisfied the Court that he has a good defence to the claim on its merits