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2025 (3) TMI 893

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..... the issuance of cheques under force. Nothing prevented the appellant from instructing his bank to stop payment of the said cheques on the ground that the same were not issued voluntarily, but that also was not done. That being so, pushing the parties to undergo rigmaroles of trial would be travesty of justice, since there is no triable issue in this regard. As regards the liability argument, the issuance of the cheques in question in itself would raise a presumption of legally enforceable debt. As mentioned above, it is not in dispute that the present respondent paid a total sum of Rs.14,04,000/- to the appellant towards investments. And as regards the cheques in question, admittedly drawn by the appellant were towards repayment of the mo .....

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..... money in some profitable venture, so he paid a total sum of Rs.14,04,000/- to the appellant in multiple installments during the period from 16.01.2013 to 27.01.2014; that thereafter, the appellant started avoiding him as regards the said investments and finally, on being persuaded, the appellant issued four post dated cheques in the month of May, 2015 in his favour; that those cheques, totaling to the tune of Rs.14,04,000/- got dishonoured by the banker of the appellant for the reason that the funds in his account to his credit were not sufficient; and that when despite repeated demands, the appellant did not pay back the said amount, he issued legal notice dated 10.03.2018, but the appellant opted to avoid the same. Therefore, the present .....

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..... dings of the appellant clearly raised a triable issue as to whether the cheques in question were obtained under coercion after abducting and illegally detaining the appellant. No other argument has been advanced. 5. On the other hand, learned counsel for respondent supports the impugned judgment and decree and also submits that the appellant had issued cheques in same fashion to another person, who also obtained decree. 6. The legal position as regards scope of grant or denial of leave to defend a suit under Order XXXVII CPC is now well settled. In plethora of judicial pronouncements, the Supreme Court laid down the principles on which an application for leave to defend has to be examined by the trial court. In one such case titled: IDBI .....

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..... that we propose to lay down to obviate exercise of judicial discretion in an arbitrary manner. At one end of the spectrum is unconditional leave to defend, granted in all cases which present a substantial defence. At the other end of the spectrum are frivolous or vexatious defences, leading to refusal of leave to defend. In between these two extremes are various kinds of defences raised which yield conditional leave to defend in most cases. It is these defences that have to be guided by broad principles which are ultimately applied by the trial Judge so that justice is done on the facts of each given case. 17. Accordingly, the principles stated in para 8 of Mechelec case [Mechelec Engineers & Manufacturers v. Basic Equipment Corpn., (19 .....

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..... hing security. As such a defence does not raise triable issues, conditions as to deposit or security or both can extend to the entire principal sum together with such interest as the court feels the justice of the case requires. 17.5. If the defendant has no substantial defence and/or raises no genuine triable issues, and the court finds such defence to be frivolous or vexatious, then leave to defend the suit shall be refused, and the plaintiff is entitled to judgment forthwith. 17.6. 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, (even if triable issues or a substantial defence is raised), shall not be granted unless the amount so admitted to be due is dep .....

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