M/S UMA SHANKER KAMAL NARAIN AND ANR. versus M/S. M.D. OVERSEAS LTD.

M/S UMA SHANKER KAMAL NARAIN AND ANR. versus M/S. M.D. OVERSEAS LTD.

Conditional leave to defend is proper where the defence is not prima facie substantial, but interests of justice require deposit of part of the decretal amount to secure the plaintiff.

Parties
Appellant: M/S. UMA SHANKAR KAMAL NARAIN AND ANR.; Respondent: M/S. M.D. OVERSEAS LTD.
Jurisdiction
India
Judgment Date
14 March 2007
Procedural Posture
Civil Appeal / Appeal Against Order of Division Bench of High Court Granting Conditional Leave to Defend
Outcome
Appeal disposed of
Legal Topics
Summary Suit, Leave to Defend, Dishonor of Cheques
Civil Procedure Summary Suit Leave to Defend Dishonor of Cheques

Case Brief

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Parties

M/S. UMA SHANKAR KAMAL NARAIN AND ANR.

Appellant

M/S. M.D. OVERSEAS LTD.

Respondent

Procedural Posture

Civil Appeal / Appeal Against Order of Division Bench of High Court Granting Conditional Leave to Defend

Legal Issues

  1. 1 Whether the High Court was justified in directing deposit of the entire decretal amount as a condition for granting leave to defend in a summary suit for dishonor of cheques

Ratio Decidendi

Conditional leave to defend is proper where the defence is not prima facie substantial, but interests of justice require deposit of part of the decretal amount to secure the plaintiff.

Court Disposition

Appeal disposed of

Orders

  • Appellants directed to deposit Rs.20,00,000/- within three months in the Registry of the High Court
  • If deposit is not made, Single Judge's decree becomes operative