Delhi HC: Leave to defend Suit under Order XXXVII may be granted if Defendant satisfies Court of substantial defence or triable issues

Delhi High Court Law Insider

Munmun Kaur

Published On: February 07, 2022 at 13:10 IST

The Delhi High Court has stated that under Order XXXVII of the Code of Civil Procedure (CPC), the Defendant may be granted leave to defend the Suit if he satisfies the Court that he has a substantial defence or that there are triable issues by way of which the Plaintiff is not entitled to leave to sign Judgment.

The observation was made while the High Court was dealing with an Application filed by Defendant under Order XXXVII Rule 3(5) of the CPC seeking grant of leave to defend the Suit. Apparently, Plaintiff had filed the Suit for recovery of Rs.4,96,00,000 along with interest @ 9% per annum from August 20, 2014. The Suit was filed on the basis of two agreements dated March 23, 2013, and August 20, 2014.

The Defendant argued that he had substantial questions on facts that can only be adjudicated after leading evidence and cannot be decided in a summary manner. On the other hand, the Plaintiff argued that the grounds taken by the Defendant in the leave to defend Application did not disclose any substantial defense and were frivolous. The Plaintiff further argued that the said grounds did not disclose any triable issue and the Application was liable to be dismissed.

Justice Suresh Kumar Kait hearing the matter observed that the intent behind the Order XXXVII of CPC is to allow the Plaintiff who has an undisputed liquidated claim against the Defendant, to obtain a summary Judgment without pointlessly being kept away from what is due, in respect of any monetary dues and to recover the dues swiftly by a summary procedure instead of taking the extensive route of a regular Suit.

He added, “But if the Defendant satisfies the court that he has a substantial defence or satisfy the Court that there are triable issues by way of plea, the Plaintiff is not entitled to leave to sign Judgment, and the Defendant is entitled to unconditional leave to defend the Suit.”

The Delhi High Court after observing plethora of Judgments delivered by the Apex Court on the subject stated This Court is of the view, in facts and circumstances of this case, defendant is entitled to conditional leave to defend the suit subject to deposit of Rs. 2 Cr or the bank guarantee of the equal amount within three weeks with Registrar General of this Court from today,”

Related Post