1985 Supreme(MP) 601

IN THE HIGH COURT OF MADHYA PRADESH
R. K. VIJAYWARGIYA, J.
M/s Filter Fabrics - Appellant
Versus
State Bank of Indore - Respondent
C. R. No. 70 of 1985 (I)
Decided On : 25-09-1985

Headnote:Civil Procedure Code, 1908 – O.37, R. 3 (5) – leave to defend – should be granted uncondionally if defence raised is not sham or moon – shine.

        Short Note

       1. The plaintiff – non – applicant filed the present suit for the recovery of money against the applicants. The suit is filed under the provisions of Order 37 C. P. C. The applicants applied for leave to defend the action. The trial Court has granted leave to defend the suit subject to the condition that the applicants furnish security in the sum of Rs. 25000/ – . Aggrieved by the order passed by the trial Court the applicants have submitted this revision.

       2. Held : The trial Court has not given any reason why the leave is being granted subject to the furnishing of security by the applicants. It has to be inferred from the fact that the trial Court has granted leave that the applicants have raised triable issue.

       3. In the circumstances leave to defend the suit should have been granted unconditionally unless the trial Court came to the conclusion that the defence raised by the applicants is sham or moon shine. In the circumstances, the order passed by the trial Court deserves to be modified and leave to defend the suit is granted to the applicants unconditionally.

       Revision allowed.