Law:

Section:

(a) Civil Procedure Code (V of 1908)-- ----O. XXXVII & S. 34---Negotiable Instruments Act (XXVI of 1881), Ss.118, 80 & 79---Suit for recovery of amount on basis of dishonoured cheques---Summary Procedure on negotiable instrument---Presumption as to negotiable instrument---Conditional leave to appear and defend---Failure to fulfil condition, effect of---Interest on decretal amount, award of---Permissibility---Defendants' application for leave to appear and defend was allowed subject to condition of furnishing surety equal to amount of dishonoured cheques, which they failed to fulfil---Defendants assailed leave granting order in appeal, which was dismissed for non-prosecution, and their application for restoration of the appeal was still pending for adjudication---Defendants took plea that suit could not be decreed as their application for restoration of appeal was still pending---Validity---Pendency of application for restoration of appeal could not be deemed to be an appeal---Mere filing or pendency of appeal did not operate as stay of proceedings or orders passed therein (in suit)---When leave to appear and defend suit had been conditionally granted to defendants, same would imply that if such condition was not fulfilled and conditional leave granting order was not complied with by defendant, then such order would cease to have effect to extent of grant of leave to appear and defend the suit---Defendants' application for leave to appear and defend, in such an event, would be deemed to have been dismissed---Court observed that non-appearance of defendants or dismissal of application for leave to appear and defend did not necessarily mean that court was not required to apply its mind to facts and documents before it---Defendants had never denied execution of any of cheques in question---Defendants, in partial satisfaction or adjustment of their liability, had transferred immovable property in favour of plaintiffs---Nothing on record to rebut claim of plaintiff---Defendants' objection as to lack of consideration for dishonoured cheques could not be allowed as they had failed to furnish surety as required by court---In view of O.XXXVII, R.2 of C.P.C. and…

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