Delhi High Court Grants Conditional Leave to Defend in Summary Suit Involving Rs. 2.81 Crores Dues Claim – Conditional Deposit of Principal Amount Ordered

In a significant ruling, the Delhi High Court today granted conditional leave to defend to the appellant, Abhay Kumar Jha, in a summary suit filed by M/S Bosch for the recovery of dues amounting to Rs. 2,81,92,694.16. The bench, comprising Hon’ble Mr. Justice Rajiv Shakdher and Hon’ble Mr. Justice Amit Bansal, ordered the appellant to deposit the principal amount of Rs. 1,49,02,560.75 as a condition for granting leave to defend.

This ruling came as a response to the appellant’s appeal against the judgment dated 9^th November 2023 by the learned Single Judge. The Single Judge had dismissed the application for leave to defend, filed under Order XXXVII Rule 3(5) of the Code of Civil Procedure, 1908, in a suit based on three invoices for supply of goods and services.

The court observed, “The defence raised by the appellant may be ‘improbable’ but it still raises a possibility of its being correct.” This observation was pivotal in the decision to grant conditional leave to defend, despite acknowledging the respondent’s strong case for recovery of the claimed dues.

The bench also addressed the issue of pre-suit interest, stating that “Interest concerning pre-suit period could not have been awarded by the learned Single Judge in a summary proceeding.” This aspect of the case will be subject to trial, considering the appellant’s claim of non-receipt of the legal notice dated 26^th June 2020.

The court directed the appellant to furnish a bank guarantee for the interest amount, as determined by the Registrar General, within a period of four weeks. Failure to comply with these conditions will result in judgment for the respondent as per the Single Judge’s decision.

Date of Decision:  31.01.2024

ABHAY KUMAR JHA  VS M/S BOSCH