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Bombay High Court

VAIBHAV ASHOK AHERversusVISHNU SUKDEO BASTE AND ORS

Decided
Disposal
Disposed Off

Holding

The High Court quashed the order granting unconditional leave to defend the summary suit and remitted the application for fresh consideration in accordance with Order XXXVII of the CPC and binding Supreme Court precedents.

Summary

The petitioner, Vaibhav Ashok Aher, filed a suit for recovery of Rs.67,00,000 claimed to be a hand loan advanced to the respondents. The Civil Judge, Senior Division, Niphad, had earlier granted unconditional leave to defend the summary suit on a bare statement that the defendants raised substantial issues, without providing reasons or applying Order XXXVII of the Code of Civil Procedure, 1908. The petitioner challenged this order by filing a writ petition. The High Court held that the lower court failed to consider the statutory test and binding Supreme Court precedents (IDBI Trusteeship Services Ltd. v. Hubtown Ltd and B.L. Kashyap & Sons Ltd. v. M/s Jms Steels & Power Corp.) and therefore quashed the order. The matter was remitted to the Civil Judge to reconsider the application for leave to defend afresh, adhering to Order XXXVII and the cited precedents. The writ petition was allowed and the order set aside.

Issues considered

  • Whether the Civil Judge correctly exercised jurisdiction in granting unconditional leave to defend a summary suit without applying Order XXXVII of the CPC.
  • Whether the defendants raised a substantial defence or triable issue warranting leave to defend.
  • Whether the order granting leave should be quashed and the matter remitted for fresh consideration.

Legislation cited

Subjects

  • summary suit
  • leave to defend
  • Order XXXVII CPC
  • substantial defence
  • civil procedure
  • quash order
  • remand

Judgment

                                                                       29 WP-9004-26.DOC

                               IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                       CIVIL APPELLATE JURISDICTION

                                       WRIT PETITION NO. 9004 OF 2026

                      Vaibhav Ashok Aher                                      ..Petitioner

                              Versus

                      Vishnu Sukdeo Baste & ors.                           …Respondents


                      Mr. Sachin Gite, for the Petitioner.

                      Mr. Girish Agrawal, a/w Mr. Shubham Jangam, for the
                           Respondent Nos. 1 to 5.


                                                 CORAM :       N. J. JAMADAR, J.
                                                 DATE    :     22nd SEPTEMBER 2026

SAINATH
SANJAY
                      Oral Order :-
BODKHE
Digitally signed by
SAINATH SANJAY
BODKHE
Date: 2026.09.24
17:54:10 +0530        1.      Heard the learned Counsel for the parties.

                      2.      The challenge in this petition is to an order dated 18 th

                      April, 2026 passed by the learned Civil Judge, Senior Division,

                      Niphad, whereby an application preferred by the plaintiff to

                      recall the order passed below Exh. 30 in Summary Suit

                      No.3/2025 dated 09th January, 2026 thereby granting an

                      unconditional leave to defend the summary suit, came to be

                      rejected.




                      SAINATH, PA                        1/4
                                                 29 WP-9004-26.DOC

3.      The petitioner has instituted the suit for recovery of a sum

of Rs.67,00,000/- which was advanced by the petitioner to the

defendants by way of a hand loan through banking channel.

4.      By the impugned order dated 09th January, 2026, the

learned Judge was persuaded to grant unconditional leave to

defend the suit by a single line reason that, the defendants have

raised substantial issues in respect of the claim amount.

5.      The impugned order is sans reasons. The learned Judge

has not adverted to the provisions contained in Order XXXVII of

the Code of Civil Procedure, 1908 (“Code, 1908”) nor has

consulted the binding precedents which guide the Courts in the

matter of grant of leave to defend a summary suit.

6.      The tests for deciding an application for grant of leave to

defend a summary suit have been reformulated by the Supreme

Court in the case IDBI Trusteeship Services Ltd. Vs. Hubtown

Ltd1. In the case B. L. Kashyap & Sons Ltd. Vs. M/s Jms Steels

& Power Corporation & anr.2, the Supreme Court has further

expounded the factors which ought to weigh with the Court in

granting or refusing to grant leave to defend the summary suit.

7.      Without satisfying himself as to whether the defendant

has raised a substantial defence or triable issues or for that

1       (2017) 1 SCC 568
2       (2022) 3 SCC 294
SAINATH, PA                        2/4
                                                        29 WP-9004-26.DOC

matter, the defence raised by the defendants is sham or bogus,

the learned Judge has granted an unconditional leave to defend

the suit.

8.      In this view of the matter, without delving into the merits

of the case, this Court considers it appropriate to remit the

matter back to the learned Civil Judge for deciding the

application for grant of leave to defend the summary suit afresh.

9.      Hence, the following order :-

                                :: ORDER ::

              i)     The Writ Petition stands allowed.

              ii)    The impugned order stands quashed and

              set aside.

              iii)   The application for grant of leave to

              defend the summary suit (Exh.30) stands

              restored to file of learned Civil Judge, Niphad.

              iv)    The learned Civil Judge is requested to

              hear and decide the application for leave to

              defend     the   summary         suit   afresh,    after

              adverting to the provisions contained in Order

              XXXVII of the Code, 1908 and the binding

              judicial     precedents,    as     expeditiously     as

              possible and, preferably, within a period of 2


SAINATH, PA                              3/4
                                                   29 WP-9004-26.DOC

              months from the date of communication of this

              order.

              The Writ Petition stands disposed.



                                         [N. J. JAMADAR, J.]




SAINATH, PA                        4/4


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