- (1.) Leave granted.
(2.) This appeal is directed against a judgment and order dated 31.8.2005 passed by the High Court of Judicature at Gujarat whereby and whereunder a first appeal filed by the respondent herein was allowed setting aside a decree passed in favour of the appellant herein under Order 37 Rule 3(6)(b) of the Code of Civil Procedure and remitting the suit to the trial court with the direction that the amount already deposited with the respondent by them in terms of the directions of the High Court shall be deemed to be the amount deposited under the lease granted by the trial court.
(3.) The basic fact of the matter is not in dispute. Appellants supplied AC pressure pipes to the respondents. A sum of Rs. 1,57,488/- became due. On the premise that as a small scale industrial unit, it cannot afford to block such a huge amount, plaintiff requested the defendants to release the said payment. The defendants having not released the outstanding payment, plaintiff became entitled to interest at the rate of 23% per annum being 5% higher than the bank rate per annum thereupon. Plaintiff filed a Summary Civil Suit in the court of Civil Judge (SD), Gandhinagar. Respondent filed an application for grant of leave to defend the suit. By reason of an order dated 27.11.2002, conditional leave was granted, directing: The application for leave to defend is hereby granted with a condition that the defendant may give security of 50% amount of the suit claim.;