Bombay HC Nixes Order Granting Company, Which Had Not Denied Its Outstanding Dues, Unconditional Leave To Defend In Summary Suit

In a plea challenging the dismissal of summons to judgment in a commercial summary suit, the Bombay High Court set aside a trial court's order granting a company unconditional leave to defend itself, while noting that the company had not denied the existence of outstanding dues owed for the services rendered by the other party. In doing so the court said that the facts of the case were so strong that the trial court should have taken cognizance of it and should not have given the defendant company an opportunity to defend itself in the suit once it was accepted by the defendant that it had received the plaintiff company's services. Subsequently, the petitioner filed a Summary Suit seeking recovery of outstanding dues along with interest and the Trial Court issued a writ of summons to the respondent. Once there is no denial on the part of Defendant with respect to the contract and the outstanding amount due and payable for the services which have been availed and received by Defendant, there is no reason as to why Defendant should be given any opportunity to defend the suit proceedings.Defendant's case for non payment of outstanding amount is clearly based on its own financial constraints and the fact that Defendant Company has faced a closure.