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        2024 (6) TMI 707 - HC - Indian Laws

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        Leave to defend in summary suit fails where the defence is sham, illusory, and no triable issue is shown. Leave to defend in a summary suit is refused where the defendant shows no bona fide defence or genuine triable issue and the defence appears sham or ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Leave to defend in summary suit fails where the defence is sham, illusory, and no triable issue is shown.

                              Leave to defend in a summary suit is refused where the defendant shows no bona fide defence or genuine triable issue and the defence appears sham or illusory. The defendant did not dispute receipt of the principal amount or the issuance and dishonour of the cheques, and its claim that the cheques were only security, together with the allegation about retained title deeds, was unsupported by any counterclaim, separate proceeding, or substantiated loss. The objection to maintainability was rejected in light of the admitted financial accommodation and repayment liability. On these materials, the Court held that no real defence was made out and the plaintiff was entitled to summary judgment and decree.




                              Issues: Whether the defendant had disclosed a substantial defence or genuine triable issues so as to warrant leave to defend the summary suit, and whether the plaintiff was entitled to summary judgment and decree.

                              Analysis: In a summary suit, leave to defend is ordinarily granted when the defendant discloses a bona fide defence or triable issues, and it is refused where the defence is illusory, sham, or practically moonshine. The defendant did not deny receipt of the principal amount or issuance and dishonour of the cheques, but relied mainly on a plea that the cheques were only security and that the plaintiff retained title deeds. That plea was unsupported by any counterclaim or separate proceeding for return of the documents or for damages, and the alleged loss was not substantiated. The objection to maintainability was also rejected in view of the defendant's own case of financial accommodation and repayment liability. On the materials before the Court, no genuine defence capable of trial was made out.

                              Conclusion: The defendant was not entitled to leave to defend, and the plaintiff was entitled to summary judgment and decree.

                              Final Conclusion: The suit was decreed in favour of the plaintiff, and the defendant's request to contest the claim was rejected as lacking a real defence.

                              Ratio Decidendi: Leave to defend in a summary suit must be refused where the defence is sham or illusory and no genuine triable issue is shown.


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                              ActsIncome Tax
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