*Imposes certain conditions on appellant
Excelsior Correspondent
JAMMU, Nov 14: A bench of the Supreme Court comprising Justice Vikram Nath and Justice Rajesh Bindal has granted leave to defend suit in the cheque dishonor case while setting aside the impugned order of the High Court of Jammu & Kashmir.
The appeal filed by M/s Iqbal Motors Transport Service assailed the correctness of the judgment and order dated 15.11.2018 passed by the High Court of Jammu & Kashmir, whereby the petition under Article 227 of the Constitution of India filed by the appellant was dismissed, confirming the order dated 17.09.2018 passed by the Trial Court.
The Trial Court had rejected the application under Order 37 Rule 3(5) of the Code of Civil Procedure, 1908 seeking leave to defend the suit instituted by the respondent Nirbhay Trehan under Order 37 of the CPC in March 2018, praying for a decree for an amount of Rs 85 lakh along with interest at the rate of 18% per annum from the date of promissory note till its realization, against the appellant.
The suit was based on the dishonour of a cheque of an amount of Rs 85 lakh said to have been issued by the appellant in favour of the respondent. Upon receiving the summons, the appellant filed an application supported by an affidavit in accordance with Order 37 Rule 3(5) of the CPC, seeking leave to defend the suit.
The application was dismissed by the Trial Court vide order dated 17.09.2018 as such the appellant preferred a petition under Article 227 of the Constitution before the High Court of J&K, which was dismissed by the impugned order dated 15.11.2018, giving rise to the present petition before the Supreme Court.
After hearing Senior Advocate Bimal Roy Jad and others for M/s Iqbal Motors Transport Company and counsels for respondent, Supreme Court bench observed, “we are of the view that the grounds taken for seeking leave to defend the suit were not totally sham and baseless. The facts constituted a triable case, and therefore, we are of the view that the appeal deserves to be allowed”.
“However, in the facts and circumstances of the case, we are of the view that some terms and conditions need to be imposed on the appellant while granting leave to defend the suit”, the Apex Court said while allowing the appeal, setting aside the impugned order and granting leave to the appellant to defend the suit subject to deposit of 50% of the claimed amount, which amounts to half of Rs 85 lakh (equivalent to Rs 42.5 lakh), with the Trial Court.
“The deposited amount shall be kept in a high interest-bearing Fixed Deposit Account in any nationalised bank for an initial period of six months, and thereafter renewed from time to time for the same period. The deposited amount, along with accrued amount, shall be awarded to the successful party resulting upon the outcome of the suit”, the Supreme Court directed.
Follow our WhatsApp channel
