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Supreme Court of India 2022-01-18 allowed

B.L. Kashyap and Sons Ltd vs JMS Steels and Power Corporation & Anr

Bench: 2 — Dinesh Maheshwari

In Brief

A steel supplier sued a project developer and contractor for unpaid dues under summary suit rules. The courts denied the contractor leave to defend, accepting that it was jointly and severally liable with the developer. The Supreme Court reversed this, holding that the contractor—who claimed it was merely executing work as an agent of the developer—raised genuine triable issues about its personal liability. The court reaffirmed that denial of leave to defend is exceptional and applies only when no triable issues exist and defenses are truly frivolous. The case will now proceed to trial to determine the contractor's actual liability.

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Civil Procedure Summary Suits Order XXXVII CPC Leave to Defend Contract Law Commercial Disputes

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