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2023 Supreme(Online)(J&K) 466

HIGH COURT OF JAMMU AND KASHMIR
JAVED IQBAL WANI, J
UT of J&K and others – Appellant
Versus
Shabir Ahmad Dar and others – Respondent
Caveat No. 283/2023



Advocates:
For the Appellants/Petitioners: Mr. Sajad Ashraf, GA
For the Respondents:Mr. Manzoor A. Dar, Advocate

Supervisory jurisdiction under Article 227 allows correction of grave legal misapplications, but does not permit re-evaluation of established facts in summary suits if legal principles are adhered to.

Headnote:(A) Article 227 of the Constitution of India - Supervisory jurisdiction of the High Court - The court addressed the legality of a trial court’s order regarding a summary suit under Order 37 of the CPC, emphasizing the need for substantial defense for granting leave to defendants. (Paras 01-08)

(B) Leave to Defend - The legal checks upon granting leave to defend under Order 37 - The Apex Court laid down principles regarding the determination of leave to defend, emphasizing that defendants must demonstrate a substantial or triable issue to warrant such leave. (Para 05)

Facts of the case:
The petitioners contested a trial court's order allowing a summary suit against them regarding unpaid dues for works rendered. The respondents claimed non-payment of around ₹ 40 lacs for executed works linked to government contracts.

Findings of Court:
The trial court’s conditions for granting leave to defend the summary suit were justified based on evidence of work executed and admitted liabilities, requiring defendants to deposit disputed amounts.

Issues: Whether the trial court correctly granted leave to defend under Order 37 CPC based on submitted work and debt acknowledgment by defendants.

Ratio Decidendi: The court upheld the trial court's order, citing proper procedural adherence and statutory requirements for summary suits, indicating it did not need to interfere due to lack of substantive cause.

Result: The petition fails and is accordingly dismissed.

JUDGEMENT

01. Supervisory jurisdiction of this Court enshrined under Article 227 of the Constitution of India is being invoked by the petitioners for seeking quashment of order dated 21.12.2022 (for shortimpugned order) passed by the Court of Additional District Judge (Bank Cases), Srinagar (for shortthe trial Court”) in case titled as, “Shabir Ahmad Dar and Ors. vs. Commissioner-cum-Secretary and ors.

Heard learned counsel for the parties.

02. The background facts emerging from the record of the petition would reveal that the contesting respondents herein filed a summary suit under Order 37 of the Code of Civil Procedure (CPC) against the petitioners and the proforma respondent No. 7 herein for recovery of an amount of ₹ 57.23 lacs on the premise that the plaintiffs/respondent Nos. 1 to 6 being piece workers have been associated with the Estates Department for execution of civil, electric, sanitary and other related works, executed upon submission of quotations invited by the Estates Department upon approval of rates on annual basis to meet exigencies of work to be completed by the Estates Department for meeting demands of various Govt. departments and their officials in relation to providing of accommodation, furniture, fixtures etc. and that the said works including renovation and repairs on annual basis are stated were executed on emergency basis by the plaintiffs/respondents herein as per the requirement of the Engineering Wing of the Estates Department, whereafter upon completion of the said works, bills for payments came to be submitted after the recording of measurements as also test checks conducted by the supervisory staff of the Estates Department and that the said bills used to be forwarded to the Executive Engineer after their certification for approval and payment and that funds in this regard used to be requisitioned and consequently payments thereof made periodically by the Estates Department to the plaintiff/respondents herein, and that to the dismay and disappointment of the plaintiffs/respondents herein, the works executed by them in the Estates Department post abrogation of Article 370 of the Constitution came to be withheld by the defendants/petitioners herein, against the works executed by the plaintiffs/respondents herein, amounting to ₹ 40 lacs despite the fact that in order to make payments and in order to meet the liability, an amount of ₹ 37.52 lacs had been kept available by the Assembly Secretariat in the treasury and to be released by the Executive Engineer in favour of the plaintiffs/respondents herein, which however, could not be released on account of the emergent situation having cropped up on account of abrogation of Article 370 in the month of August, 2019 and conversion of MLA Hostel into a sub-jail for housing political detainees, which hostel upon the visit by the officials of the District Administration was ordered to be repaired on emergent basis resulting into consequent engagement of the plaintiffs/respondents herein by the defendant/petitioner No. 3 herein, whereupon the plaintiffs/respondents herein executed works to the tune of ₹ 18.35 lacs and raised bills after recording of certification by the engineering staff and that despite satisfactory completion of the works in question, the defendants/petitioners herein did not disburse payments in favour of the plaintiffs/respondents herein owing to the changes recorded in the codal formalities relating to the disbursement of the payments, which included execution of an agreement, and that on account of the failure of the defendants/petitioners herein to release the said payments in favour of the plaintiffs/respondents herein, a notice under section 80 CPC in the first instance came to be served upon the defendants/petitioners herein, as a pre-litigation proceedings, in response to which the defendants/petitioners herein replied and admitted the execution of work by the plaintiffs/respondents herein as also their entitlement thereof

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