In Brief
B.L. Kashyap and Sons, a steel supplier, filed a summary suit under Code of Civil Procedure Order XXXVII against two defendants—a real estate developer and a contractor—for Rs. 89.5 crores for unpaid steel supplies. The trial court and high court denied the contractor leave to defend, treating its assertions as frivolous. The Supreme Court held that the contractor had raised genuine triable issues—namely, that it acted merely as the principal developer's agent and held no independent liability for payment. The Court ruled that denial of leave to defend is an exception; where triable issues exist indicating a fair defense, leave must ordinarily be granted so the matter can proceed to trial. The appeal was allowed, leave to defend was granted, and the case was remitted for trial.
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