In Brief
A company (Polycap Wires) sued an individual (Talaulikar) in a summary suit under Order XXXVII of the CPC for recovery of outstanding dues of Rs. 64,18,609 for goods supplied. The courts granted conditional leave to defend requiring deposit of Rs. 30,00,000, relying on the existence of a commercial relationship between the parties. The Supreme Court held that mere commercial dealing cannot justify conditional leave without proper consideration of the defence. Since the appellant raised substantial defence and genuine triable issues—defective goods returned, balance paid, criminal prosecution withdrawn—unconditional leave to defend was warranted. The appeal was allowed and the conditional leave orders set aside.
The lawyer headnote and full judgment text are available to registered users.