NDLI: B. L. Kashyap and Sons Ltd Vs. M/s Jms Steels and Power Corporation & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1908 – Or. XXXVII Code of Civil Procedure
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Code of Civil Procedure, 1908 – Or. XXXVII – Summary Suits – Leave to defend – Plaintiff-respondent no.1 is registered partnership firm, manufacturer and supplier of iron and steel products – It had supplied 200 tons of steel to defendant no.1 which was a real estate firm – Supply was made in terms of two purchase orders as raised by appellant-defendant No.2, who was contractor working with defendant no. 1 – On failure to make requisite payment, plaintiff filed summary suit by making the defendants jointly and severally liable – Trial Court declined to grant “leave to defend” to both the defendants – Appellantdefendant no.2 challenged the judgment of trial court – High Court observed that appellant- defendant no.2 was not entitled to “leave to defend” because the defenses raised were frivolous and vexatious and did not give rise to genuine triable issue – High Court further observed that there was no such requirement that the cheque ought to be dishonored for filing summary suit and held the suit to be maintainable – On appeal, Held: As per the plaint averment , the matter is based on written contract arising out of written purchase orders issued by the appellant on the instruction and on behalf of defendant No. 1 – Contention against maintainability of the summary suit in terms of Or. XXXVII cannot be accepted – There is no reason to consider any interference in the decision of the High Court – Grant of leave to defend (with or without conditions) is the ordinary rule; and denial of leave to defend is an exception – Even in the case of raising of triable issues, with the defendant indicating his having a fair or reasonable defence, he is ordinarily entitled to unconditional leave to defend unless there be any strong reason to deny the leave – On facts, no reason as to why and how the defence of the appellant (defendant No. 2) was treated as frivolous or vexatious – Appellant had indeed raised triable issues, particularly concerning its liability and the defence of the appellant cannot be said to be frivolous or vexatious altogether – Appellant-defendant No. 2 ought to have been granted the leave to defend the claim made in the suit concerning its liability.
Judge	Hon'ble Mr. Justice Dinesh Maheshwari
Neutral Citation	2022 INSC 60
Petitioner	B. L. Kashyap And Sons Ltd
Respondent	M/s Jms Steels And Power Corporation & Anr.
SCR	[2022] 1 S.C.R. 1024
Judgement Date	2022-01-18
Case Number	379

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