Law: Civil Procedure Code (V of 1908)

Section: 2,3

Law: Negotiable Instruments Act, 1881

Section: 118

(a) Words and phrases--- ----Security and surety---Distinction---Security refers to freedom from harm or measures taken to prevent harm, while surety refers to a promise to one party to assume responsibility for the debt obligation of another party, if that party defaults. (b) Civil Procedure Code (V of 1908)--- ----O. XXXVII, Rr. 2 & 3---Leave to defend the suit---Conditional order, non-compliance of---Effect---In summary suit, when defendant does not obtain leave or leave is refused to him, or where defendant fails to comply with conditional order such defendant is precluded from further contesting plaintiff's claim---There is further disability for defendant under O. XXXVII, C.P.C. that allegations in plaint must be deemed to be admitted and plaintiff would be entitled to a decree---Provisions of O. XXXVII, C.P.C. not only provide for abridgement of procedure of suits so covered but restricts and curtails right of defendants in such suits to contest plaintiff's claim---When matter is carried in appeal, the defendant who did not obtain leave or had failed to comply with conditional order continues to suffer under the same disability. (c) Negotiable Instruments Act (XXVI of 1881)--- ----S. 118---Civil Procedure Code (V of 1908), O. XXXVII, Rr. 2 & 3---Suit for recovery of money on the basis of negotiable instruments---Presumption---Leave to defend the suit---Conditional order, non-compliance of---Appellant/defendant was granted leave to defend the suit subject to deposit of security in shape of Defence Saving Certificates---Appellant/defendant failed to comply the condition resultantly suit was decreed against him---Validity---Cheques in question had presumption under S. 118 of Negotiable Instruments Act, 1881, and contents of plaint and allegations made therein were deemed to be admitted---Appellant/defendant did not comply with conditional order, therefore, he was not entitled to challenge the decree before High Court on such grounds that he had taken in application for leave to defend the suit---High Court declined to interfere with judgment and decree passed by Trial Court as the Court did not err in law by passing a decree---Appeal was dismissed,…

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