Law:

Section:

(a) Civil Procedure Code (V of 1908)-------O. XXXVII, R.3---Suit for recovery---Leave to defend the suit by the defendant---Imposition of terms on the leave---Principles. Principles settled for the leave and the imposition of terms on the leave are following: (i) The Court should consider the facts disclosed in the affidavit filed by a defendant along with application for seeking leave to appear and defend the suit; (ii) If such facts show a plausible defence or a substantial question of fact or law needing trial or investigation, the defendant will be entitled to the leave to defend the suit; (iii) If the defence set-up is vague or unsatisfactory or doubtful or not genuine, leave should not be refused altogether but the applying defendant should be put on terms either to furnish security or to deposit the amount claimed; or (iv) If the allegations in the affidavit are illusory or improbable not raising a triable issue as to the consideration for the Bill, leave can be refused by the Court. Despite the finding of existence of a "plausible defence" or a "substantial question of fact or law" or a "triable issue" in the case, the Court could subject the grant of leave on the term of cash deposit in the Court by the defendant for the reason that "conduct of the defendant was not entirely free from suspicion." Fine Textile Mills Ltd. Karachi v. Haji Umer PLD 1963 SC 163 fol. (b) Civil Procedure Code (V of 1908)--- ----O. XXXVII, R.3---Suit for recovery---Leave to defend suit---Grant or refusal---Basis---Facts and the questions as disclosed in the affidavit and application to seek leave to appear and defend the suit, form the basis for grant or refusal of the leave and/or to allow the leave upon terms or otherwise---Imposition of a term is the Court's discretion to be exercised judiciously upon the facts of the case before it---Such exercise should not be arbitrary, perverse or unduly harsh so as to amount denial of the defence to a deserving defendant---Principles. Agrofoster (Pvt.) Ltd. and 2 others v. Judge Banking Court No.5, Karachi and another PLD 1999 Kar.398; Haji Abdul Wahid v. Hoechst Pakistan Limited and another 1993 CLC 1291; Ehsanul Haq Kiani v. Allied…

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