{"id":216903,"date":"2019-07-16T14:33:28","date_gmt":"2019-07-16T09:03:28","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=216903"},"modified":"2019-07-18T16:19:19","modified_gmt":"2019-07-18T10:49:19","slug":"conditional-leave-to-defend-may-be-granted-in-case-of-doubt-regarding-the-genuineness-of-defence-in-summary-suits","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/07\/16\/conditional-leave-to-defend-may-be-granted-in-case-of-doubt-regarding-the-genuineness-of-defence-in-summary-suits\/","title":{"rendered":"&#8216;Conditional&#8217; leave to defend may be granted in case of doubt regarding the genuineness of defence in summary suits"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Supreme Court<\/strong>: On the question relating to the power of the court to grant leave to defend in case of sham or moonshine defence in a commercial dispute, the bench of Ashok Bhushan and Navin Sinha, JJ said,<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cif the court is satisfied of a plausible or probable defence and which defence is not considered a sham or moonshine, but yet leaving certain doubts in the mind of the court, it may grant conditional leave to defend.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The Court also explained that <span style=\"color: #ff0000;\"><em>in a summary suit, if the defendant discloses such facts of a prima facie fair and reasonable defence, the court may grant unconditional leave to defend<\/em><\/span>. This naturally\u00a0\u00a0 concerns the subjective satisfaction of the court on basis of the materials that may be placed before it.<\/p>\n<p style=\"text-align: justify;\">Explaining the distinction between both the above mentioned subjective satisfactions of the court, the bench said,<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cin the latter case there is an element of discretion vested in the court. Such discretion is not absolute but has to be judiciously exercised tempered with what is just and proper in the facts of a particular case.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The court said that <span style=\"color: #ff0000;\"><em>the ultimate object of a summary suit is expeditious disposal of a commercial dispute<\/em><\/span>. The discretion vested in the court therefore requires it to maintain the delicate balance between the respective rights and contentions by not passing an order which may ultimately end up impeding the speedy resolution of the dispute.<\/p>\n<p style=\"text-align: justify;\">The Court also relied upon the decision in <a href=\"http:\/\/scconline.com\/DocumentLink\/511Mgya7\"><em>IDBI Trusteeship Services Limited vs. Hubtown Limited<\/em>,\u00a0 (2017) 1 SCC 568<\/a>, wherein it was held,<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201c17.3 Even if the defendant raises triable issues, if a doubt is left with the trial Judge about the defendant\u2019s good faith, or the genuineness of the triable issues, the trial Judge may impose conditions both as to time or mode of trial, as\u00a0 well as payment into court or furnishing security. Care must be taken to see that the object of the provisions to assist expeditious disposal of commercial causes is not defeated. Care must also be taken to see that such triable issues are not shut out by unduly severe orders as to deposit or security.<\/p>\n<p style=\"text-align: justify;\">17.4. If the defendant raises a defence which is plausible but improbable, the trial Judge may impose conditions as to time or mode of trial, as well as payment into court, or furnishing security. As such a defence does not raise triable issues, conditions as to deposit or security or both can extend to the entire principal sum together with such interest as the court feels the justice of the case requires.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">[Sudin Dilip Talaulikar v. Polycap Wires Pvt. Ltd, <a href=\"http:\/\/scconline.com\/DocumentLink\/dtt8N1Km\"><b>2019 SCC OnLine SC 857<\/b><\/a>, decided on 15.07.2019]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: On the question relating to the power of the court to grant leave to defend in case of sham or <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[36639,11191,13291,36638],"class_list":["post-216903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-commercial-dispute","tag-leave-to-defend","tag-practice-and-procedure","tag-summary-trial"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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discretion for refusal\/grant of leave to defend laid down","author":"Prachi Bhardwaj","date":"November 19, 2016","format":false,"excerpt":"Supreme Court: With the intent to prevent the arbitrary exercise of judicial discretion under Order 37 CPC while refusing the leave to defend or granting conditional or unconditional leave to defend, the bench of Kurian Joseph and R.\u00a0F. Nariman, JJ laid down broad guidelines to be kept into mind by\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/11\/DSC_5487.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":263116,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/04\/grant-of-leave-to-defend-is-the-ordinary-rule-and-denial-is-an-exception-supreme-court-lays-down-detailed-guidelines-for-leave-to-defend-in-summary-suits\/","url_meta":{"origin":216903,"position":2},"title":"Grant of leave to defend is the ordinary rule and denial is an exception; Supreme Court lays down detailed guidelines for leave to defend in summary suits\u00a0  \u00a0","author":"Editor","date":"March 4, 2022","format":false,"excerpt":"Supreme Court: While clarifying the law on leave to defend, the Division Bench of Vineet Saran and Dinesh Maheshwari*, JJ., held that even if there remains a reasonable doubt about the probability of defence, sterner or higher conditions could be imposed while granting leave to defend but, denying the leave\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-98.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-98.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-98.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-98.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-98.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":260320,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/20\/explained-grant-of-leave-to-defend-the-best-approach\/","url_meta":{"origin":216903,"position":3},"title":"Explained| Grant of Leave to Defend: The best approach\u00a0","author":"Prachi Bhardwaj","date":"January 20, 2022","format":false,"excerpt":"Supreme Court: The bench of Vineet Saran and Dinesh Maheshwari*, JJ has explained the law relating to grant of unconditional leave to defend and held that while dealing with an application seeking leave to defend, it would not be a correct approach to proceed as if denying the leave is\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Explained-Grant-of-Leave-to-Defend-The-best-approach.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Explained-Grant-of-Leave-to-Defend-The-best-approach.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Explained-Grant-of-Leave-to-Defend-The-best-approach.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Explained-Grant-of-Leave-to-Defend-The-best-approach.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Explained-Grant-of-Leave-to-Defend-The-best-approach.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":217533,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/01\/supreme-court-monthly-roundup-july-2019\/","url_meta":{"origin":216903,"position":4},"title":"Supreme Court Monthly Roundup \u2013 July 2019","author":"Prachi Bhardwaj","date":"August 1, 2019","format":false,"excerpt":"TOP STORIES SC cancels Amrapali Group\u2019s RERA registration for defrauding homebuyers Because of their failure to fulfil the obligations towards the buyers and the serious kind of fraud which has been played by them upon the home buyers, the registration of Amrapali group of companies under the Real Estate Regulation\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":218167,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/17\/del-hc-discrepancy-of-not-filing-leave-to-defend-under-or-37-r-35-in-response-to-summary-suit-could-be-ignored-in-interest-of-justice\/","url_meta":{"origin":216903,"position":5},"title":"Del HC | Discrepancy of not filing &#8220;leave to defend&#8221; under Or. 37 R. 3(5) in response to summary suit could be ignored in interest of justice","author":"Bhumika Indulia","date":"August 17, 2019","format":false,"excerpt":"Delhi High court:\u00a0Vibhu Bhkaru, J. dismissed a revision petition filed under Section 115 CPC impugning an order passed by the Additional District Judge in the subject summary suit whereby the respondents were granted unconditional Leave to Defend. The respondents had defaulted in repaying the loan extended to them by the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/216903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=216903"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/216903\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/154914"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=216903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=216903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=216903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}