{"id":260320,"date":"2022-01-20T09:30:00","date_gmt":"2022-01-20T04:00:00","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=260320"},"modified":"2022-01-21T09:32:36","modified_gmt":"2022-01-21T04:02:36","slug":"explained-grant-of-leave-to-defend-the-best-approach","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/20\/explained-grant-of-leave-to-defend-the-best-approach\/","title":{"rendered":"Explained| Grant of Leave to Defend: The best approach\u00a0"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Supreme Court<\/strong>: The bench of Vineet Saran and <strong>Dinesh Maheshwari*<\/strong>, 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 the rule or that the leave to defend is to be granted only in exceptional cases or only in cases where the defence would appear to be a meritorious one.<\/p>\n<p style=\"text-align: justify;\">The Court observed that , generally, the prayer for leave to defend is to be denied in such cases where the defendant has practically no defence and is unable to give out even a semblance of triable issues before the Court. It, however, explained the four eventualities where leave to defend may be granted:<\/p>\n<ol style=\"text-align: justify;\">\n<li>if the defendant satisfies the Court that he has substantial defence, i.e., a defence which is likely to succeed, he is entitled to unconditional leave to defend<\/li>\n<li>where the defendant raises triable issues indicating a fair or bonafide or reasonable defence, albeit not a positively good defence, he would be ordinarily entitled to unconditional leave to defend.<\/li>\n<li>where the defendant raises triable issues, but it remains doubtful if the defendant is raising the same in good faith or about genuineness of the issues, the Trial Court is expected to balance the requirements of expeditious disposal of commercial causes on one hand and of not shutting out triable issues by unduly severe orders on the other. Therefore, the Trial Court may impose conditions both as to time or mode of trial as well as payment into the Court or furnishing security.<\/li>\n<li>where the proposed defence appear to be plausible but improbable, heightened conditions may be imposed as to the time or mode of trial as also of payment into the Court or furnishing security or both, which may extend to the entire principal sum together with just and requisite interest.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">Thus, it could be seen that in the case of substantial defence, the defendant is entitled to unconditional leave; and even in the case of a triable issue on a fair and reasonable defence, the defendant is ordinarily entitled to unconditional leave to defend. In case of doubts about the intent of the defendant or genuineness of the triable issues as also the probability of defence, the leave could yet be granted but while imposing conditions as to the time or mode of trial or payment or furnishing security. Thus, <strong><em>even in such cases of doubts or reservations, denial of leave to defend is not the rule; but appropriate conditions may be imposed while granting the leave. <\/em><\/strong><\/p>\n<p style=\"text-align: justify;\">Further, it is only in the case where the defendant is found to be having no substantial defence and\/or raising no genuine triable issues coupled with the Court\u2019s view that the defence is frivolous or vexatious that the leave to defend is to be refused and the plaintiff is entitled to judgment forthwith.<\/p>\n<p style=\"text-align: justify;\">The Court, however, clarified that in the case where any part of the amount claimed by the plaintiff is admitted by the defendant, leave to defend is not to be granted unless the amount so admitted is deposited by the defendant in the Court.<\/p>\n<p style=\"text-align: justify;\">Therefore, it was 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 the rule or that the leave to defend is to be granted only in exceptional cases or only in cases where the defence would appear to be a meritorious one. Even in the case of raising of triable issues, with the defendant indicating his having a fair or reasonable defence, he is ordinarily entitled to unconditional leave to defend unless there be any strong reason to deny the leave.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cIt gets perforce reiterated that even if there remains a reasonable doubt about the probability of defence, sterner or higher conditions as stated above could be imposed while granting leave but, denying the leave would be ordinarily countenanced only in such cases where the defendant fails to show any genuine triable issue and the Court finds the defence to be frivolous or vexatious.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">[BL Kashyap v. JMS Steels and Power Corporation, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/W11eDpeH\"><b>2022 SCC OnLine SC 59<\/b><\/a>, decided on 18.01.2022]<\/p>\n<p style=\"text-align: justify;\">*Judgment by: Justice Dinesh Maheshwari<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: The bench of Vineet Saran and Dinesh Maheshwari*, JJ has explained the law relating to grant of unconditional leave to <\/p>\n","protected":false},"author":121,"featured_media":260321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[3556,11191,13291,48398],"class_list":["post-260320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-defence","tag-leave-to-defend","tag-practice-and-procedure","tag-unconditional-leave-to-defend"],"yoast_head":"<!-- This site is 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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":199826,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/08\/07\/leave-to-defend-denied-in-light-of-frivolous-and-vexatious-defence\/","url_meta":{"origin":260320,"position":1},"title":"Leave to defend denied in light of frivolous and vexatious defence","author":"Bhumika Indulia","date":"August 7, 2018","format":false,"excerpt":"Delhi High Court: A Single Judge Bench comprising of Valmiki Mehta, J. dismissed a regular first appeal filed under Section 96 CPC against the judgment of the trial court whereby the appellant\u2019s application for leave to defend was dismissed. Brief facts of the case are that the appellant-defendant took a\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":[]},{"id":216903,"url":"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\/","url_meta":{"origin":260320,"position":2},"title":"&#8216;Conditional&#8217; leave to defend may be granted in case of doubt regarding the genuineness of defence in summary suits","author":"Prachi Bhardwaj","date":"July 16, 2019","format":false,"excerpt":"Supreme Court: 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, \u201cif the court is satisfied of a plausible or probable defence and\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\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"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":260320,"position":3},"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":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":260320,"position":4},"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":[]},{"id":201439,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/09\/07\/leave-to-defend-application-rejected-in-light-of-creating-confusion-and-false-defence\/","url_meta":{"origin":260320,"position":5},"title":"Leave to defend application rejected in light of creating confusion and false defence","author":"Bhumika Indulia","date":"September 7, 2018","format":false,"excerpt":"Delhi High Court: A Single Judge Bench comprising of Valmiki Mehta, J. dismissed an appeal filed under Section 96 CPC against the order of the trial court whereby appellant\u2019s leave of defend application was dismissed. The case pertains to a recovery suit filed by the respondent against the appellant. It\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\/260320","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=260320"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/260320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/260321"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=260320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=260320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=260320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}