Synopsis

The petitioner-plaintiff instituted a Summary Suit for recovery of Rs.30,02,000/- against the respondent-defendant for steel supplies made. The respondent-defendant filed an application seeking leave to defend the suit. The Trial Court granted unconditional leave to defend, which the petitioner challenged before the High Court.

The High Court held that the respondent-defendant had specifically disputed only one invoice amounting to Rs.4,45,765/-, while the remaining claim of Rs.25,56,235/- remained undisputed. Applying the principles laid down by the Hon'ble Supreme Court in IDBI Trusteeship Services Ltd. vs. Hubtown Ltd. and B.L. Kashyap and Sons Ltd. vs. JMS Steels and Power Corporation, the Court held that where any part of the claim is admitted, leave to defend cannot be granted unless the admitted amount is first deposited. The Court modified the Trial Court's order and directed the respondent-defendant to deposit the undisputed amount of Rs.25,56,235/- before being entitled to defend the suit.

1.  Heading of the Judgment

In the High Court of Judicature at Bombay Bench at Aurangabad

WRIT PETITION NO. 12461 OF 2021

Shrihari Traders, Having its Business at Kawa Road, Latur, Through its Power of attorney holder Mr. Laxmiraman Harikishan Malu, Age: 32 years, Occu.: Business, Kawa Road, Basweshwar Chowk, Latur.

... Petitioner (Orig. Plaintiff)

VERSUS

Choudhary & Choudhary (India) Ltd. Through its Chairman & Managing Director Mr. Anand Gupta, Age: Major, Occu.: Business, R/o. Rajkama LOPP University Campus, CSTRD, Klima, Mumbai.

... Respondent (Orig. Defendant)

Coram: Hon'ble Mr. Justice Siddheshwar S. Thombre

Core Law

Order XXXVII of the Code of Civil Procedure, 1908 – Summary Suit – Leave to defend – Unconditional leave vs. conditional leave – Admission of part of claim – Deposit of admitted amount – Principles governing grant of leave to defend.

Court

High Court of Judicature at Bombay, Bench at Aurangabad

Coram: Hon'ble Mr. Justice Siddheshwar S. Thombre (Single Judge)

Date of Judgment: June 11, 2026

Case No.: Writ Petition No. 12461 of 2021

Date: June 11, 2026

2. Legal Framework

Major Laws and Provisions Involved:

• Code of Civil Procedure, 1908 – Order XXXVII (Summary Procedure for Recovery of Debts)

• Order XXXVII Rule 3 – Procedure for leave to defend in summary suits

• Constitution of India – Article 227 (Supervisory jurisdiction of High Courts)

Subject Matter of the Judgment:

Whether the Trial Court was justified in granting unconditional leave to defend to the defendant in a summary suit where the defendant had specifically disputed only a part of the claim and had not raised any dispute regarding the remaining amount; and whether the defendant ought to have been directed to deposit the admitted/undisputed amount before being granted leave to defend.

Key Legal Principles Applied:

Approval (in the context of summary suits) corresponds to specific claims/invoices:

In summary suits, a defendant's dispute must be specific to particular invoices. A general denial without specific pleadings cannot be treated as disputing the entire claim. The Court will look at the actual pleadings, not mere arguments, to determine what is admitted and what is disputed.

If any part of the claim is admitted, leave to defend cannot be granted unless the admitted amount is deposited:

The Hon'ble Supreme Court in IDBI Trusteeship Services Limited Vs. Hubtown Limited (AIR 2016 SC 5321) categorically held that if any part of the amount claimed by the plaintiff is admitted by the defendant to be due from him, leave to defend the suit shall not be granted unless the amount so admitted to be due is deposited by the defendant in court.

Principles governing grant of leave to defend (as laid down in IDBI Trusteeship Services Ltd. vs. Hubtown Ltd.):

(a) If the defendant satisfies the Court that he has a substantial defence, that is, a defence that is likely to succeed, the plaintiff is not entitled to leave to sign judgment, and the defendant is entitled to u

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