In Brief
The appellant challenged a conditional leave to defend granted in a summary suit for recovery of Rs. 64,18,609 for alleged unpaid goods. The conditions required depositing Rs. 30,00,000 in court. The Supreme Court held that courts cannot justify conditional leave merely based on the existence of past commercial relations. The court must carefully examine the defendant's substantive defences and materials on record. Since the appellant raised genuine triable issues—including arguments about defective goods returned, amounts already paid, and the timing and authenticity of cheques—the defence was neither frivolous nor improbable. The Court allowed the appeal, set aside the conditional leave order, and granted unconditional leave to defend.
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