- (1.) Leave granted.
(2.) Challenge in this appeal is to the order passed by a Division Bench of the Delhi High Court granting conditional leave to the appellants to defend in a summary suit in terms of Order XXXVII Rule 1 of the Code of Civil Procedure, 1908 (in short the 'CPC'). Appellants are the defendants in the said suit. The appellants filed an application for leave to defend in the same suit. Learned Single Judge of the High Court found that the grounds taken in the application for leave to defend were sham and moonshine. The plaintiff/respondent had filed the suit in terms of Rule XXXVII Rule 1 based upon four cheques which were purportedly issued by defendant No. 2 i.e. appellant No.2 herein, in favour of the plaintiffs/respondents. The cheques were dishonored with the remark that the payments were stopped by the drawer.
(3.) The learned Single Judge after considering the various stands taken in the petition came to hold that the defence as raised by the defendants is a moonshine defence and the same is raised only for the purpose of delaying payment for the amount which is due for payment. Learned Single Judge refused to grant leave to defend. The plaintiff was held to be entitled for decree for recovery of the concerned amount i.e. Rs.39,30,856/- along with interest at the rate of 12% p.a. from the date of suit till realization. The plaintiff was also held to be entitled to cost. The said order was challenged in RFA (OS) Nos. 18 and 19 of 2006.;