M/S. GURU NANAK PAPER MILLS PRIVATE LIMITED AND OTHERS Vs. M/S. RAVI SONS PARTNERSHIP CONCERN INDUSTRIAL AREA, CHANDIGARH

JUDGEMENT

(1.) THIS revision petition is directed against the order of the trial Court dated October 10, 1988, whereby the Defendants have been given the permission to contest the suit, filed, under Order XXXVII, Code of Civil Procedure; provided the Defendants furnish security in the sum of Rs. 4 1/2 lacs to the satisfaction of the Court.

(2.) THE learned Counsel for the Defendants -Petitioners submitted that once the leave was granted to contest the suit, no such condition could be imposed. In support of the contention, the learned Counsel relied upon Mechalec Engineers and Manufacturers v. Basic Equipment Corporation : A.I.R. 1977 S.C. 577 and Manjit Singh v. Manohar Lal Peshawaria, (1977) P.L.R. 10 (S.N.) : 1977 Rev. L.R. 28. On the other hand, the learned Counsel for the Plaintiff Respondent submitted that in view of the admission made by the Defendants in the letter dated November 16, 1987, a copy whereof filed in this Court, the Defendants have been rightly directed to furnish security before they could be allowed to contest the suit.

(3.) AFTER hearing the learned Counsel for the parties, I find that in view of the Supreme Court decision in Mechalec Engineers and Manufacturers' case (supra), no such condition could be imposed upon the Defendants. It was held therein: