ELECTRONICS COMPONENTS (INDIA) AND OTHERS Vs. INDIAN BANK. SECTOR 7, CHANDIGARH THROUGH ITS ZONAL MANAGER

JUDGEMENT

(1.) Indian Bank filed a suit on 25th August, 1984 for recovery of Rs. 5,79,039 14 against M/S Electronics Components (India) situate in Mohali near Chandigarh and its partners under Order 37 of the Code of Civil Procedure (for short 'the Code'). The Defendants filed an application for leave to defend the suit which was contested by the Bank, The trial Court by order dated 31st May, 1986 allowed the Defendants to defend the suit on furnishing security of Rs. 6 lacs within 10 days of the order, failing which the case was to come upon 10.5.86 for further proceedings. This is revision by the Defendants against the direction to furnish security of 6 lacs.

(2.) The learned Counsel for the Defendants has argued that once the defences raised in the application filed by it show that triable issues arise, which matter was accepted by the Court below, in view of M/s Mechalec Engineers & Manufacturers v/s. M/s Basic Equipment Corporation : A.I.R. 1977 S. C. 577, the condition of furnishing security could not be imposed and unconditional leave to defend had to be granted. The argument on the face of it has obvious merit but Shri J. C. Verma, Advocate, appearing for the bank has argued that there was no triable issue and the defence is vexatious, illusory, and sham, and it was entitled to a judgment for the amount claimed.

(3.) After considering the matter I am of the view that the Defendants have not raised fair or bonafide or reasonable defences, yet mercy is shown to the Defendants to try to prove the defences subject to the condition that they give security of Rs. 6 lacs within one month from today.