Supreme Court of India

IDBI Trusteeship Services Ltd v Hubtown Ltd

(2017) 1 SCC 56820161 min read
The case in brief30-second read
Facts
The plaintiff, a debenture trustee, filed a summary suit under O.XXXVII. The defendant sought leave to defend.
Issue
What principles govern the grant of leave to defend under O.XXXVII R.3(5) after the 1976 amendment.
Held
The older Mechelec principles must be read in the light of the amended O.XXXVII R.3. Where the defence is substantial, leave is unconditional; where it raises triable issues fairly, leave is ordinarily unconditional; where it is plausible but improbable, conditions such as deposit may be imposed; where it is frivolous or vexatious, leave is refused; and where any part of the claim is admitted, leave is not granted until it is deposited.
Principle
Leave to defend a summary suit depends on the strength of the defence and may be unconditional, conditional or refused.

Facts

  • The plaintiff, a debenture trustee, filed a summary suit under O.XXXVII. The defendant sought leave to defend.

Issue

  1. What principles govern the grant of leave to defend under O.XXXVII R.3(5) after the 1976 amendment.

Held

  • The older Mechelec principles must be read in the light of the amended O.XXXVII R.3. Where the defence is substantial, leave is unconditional; where it raises triable issues fairly, leave is ordinarily unconditional; where it is plausible but improbable, conditions such as deposit may be imposed; where it is frivolous or vexatious, leave is refused; and where any part of the claim is admitted, leave is not granted until it is deposited.

Cite this

Citation

IDBI Trusteeship Services Ltd v Hubtown Ltd (2017) 1 SCC 568

Reported: https://indiankanoon.org/doc/194456776/. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.