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Bombay High Court

Aishwarya Business Corporation Pvt LtdversusSai Krishna Eng and Constructions Pvt Ltd

Decided
Disposal
Disposed Off

Holding

The order granting conditional leave to defend subject to deposit of Rs.40,00,000 is valid and the writ petition is dismissed.

Summary

The petitioner, M/s. Aishwarya Business Corporation Pvt. Ltd., challenged an order of the City Civil Court that granted the defendant, Sai Krishna Eng and Constructions Pvt Ltd, conditional leave to defend a suit provided it deposited Rs.40,00,000. The petitioner argued that the condition was based on a purported admission by the defendant without giving the defendant a chance to verify the accounts. The court examined the Supreme Court’s decision in IDBI Trusteeship Services Ltd. v. Hubtown Ltd., which holds that when a defendant admits part of a claim, leave to defend may be conditioned on deposit of the admitted amount even if there are triable issues. Applying this precedent, the High Court found no error in the lower court’s order. Consequently, the writ petition was dismissed, leaving the conditional leave order intact.

Issues considered

  • Whether a conditional leave to defend a suit, requiring deposit of an admitted amount, is valid under civil procedure law
  • Whether the defendant’s right to verify accounts was violated by imposing the deposit condition

Subjects

  • conditional leave to defend
  • admission of claim
  • civil procedure
  • writ petition
  • deposit of money
  • Supreme Court precedent

Judgment

                                                                  26-WP-10920-2026.DOC

                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                    CIVIL APPELLATE JURISDICTION

                                    WRIT PETITION NO. 10920 OF 2026


                   M/s. Aishwarya Business
                   Corporation Pvt. Ltd.                                   ..Petitioner

                           Versus

                   Sai Krishna Eng and Constructions Pvt ltd           …Respondent


                   Mr. Nishant, a/w Mr. George Thomas, for the Petitioner.

                   Ms. Ankita D Katakdhond, a/w Ms. Bhagyalaxmi Dakuwa,
                        Mr. Nitin S Murkute, for Respondent No. 1.


                                              CORAM:         N. J. JAMADAR, J.
                                              DATE :         29th SEPTEMBER 2026

SAINATH
SANJAY
BODKHE
                   P.C.:
Digitally signed
by SAINATH
SANJAY BODKHE
Date: 2026.10.01
17:51:42 +0530
                   1.      Heard the learned Counsel for the petitioner.

                   2.      The challenge in this petition is to an order dated 17th

                   February, 2026 whereby the learned Judge, City Civil Court has

                   granted conditional leave to defend the suit subject to the

                   deposit of a sum of Rs.40,00,000/- by the defendant.

                   3.      Mr. Nishant, the learned Counsel for the petitioner

                   submitted that, the learned Judge, City Civil Court, has passed

                   the order granting conditional leave to defend the suit on the

                   basis of a purported admission made by the defendant that, an

                   amount of Rs.40,00,000/- is approximately due from the
                   SAINATH, PA                         1/2
                                                   26-WP-10920-2026.DOC

defendant to the plaintiff, subject to verification of the books of

account.      However,     the   defendant   was     not   provided   an

opportunity to verify the books of account.

4.      In view of the decision of the Supreme Court in the case of

IDBI Trusteeship Services Ltd. Vs. Hubtown Ltd.1, where the

defendant admits part of the claim of the plaintiff, leave to

defend cannot be granted without a condition to deposit of the

admitted amount even if the defendant raises triable issues.

Thus, no fault can be found with the impugned order.

Resultantly, this Court in exercise of its writ jurisdiction, does

not find any propriety in entertaining this petition.

5.      The Writ Petition stands dismissed.



                                             [N. J. JAMADAR, J.]




1       2017 (1) SCC 568
SAINATH, PA                           2/2


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