Partly allowed

Modern Machinery Store v. Rajesh Kumar Gupta S/O Late Shri Kishorilal Gupta

Rajasthan HC11 Dec 2024CW/1748/2020

Case brief

AI extract

What is this about?

The Court modified an order allowing defendants to defend on furnishing a bank guarantee, holding such a condition illegal. The Court set aside the bank guarantee requirement and directed the furnishing of solvent security instead.

What did the court decide?

Condition of bank guarantee set aside; defendants directed to furnish solvent security of like amount.

Modern Machinery Store Vs Rajesh Kumar… — Civil Procedure and Limitation | Rajasthan HC (2024)

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[2024:RJ-JP:50959]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

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S.B. Civil Writ Petition No. 1748/2020

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Modern Machinery Store, Through Partner Sanjay Gupta S/o Shri Narayan Datta Gupta R/o Heera Ice Factory, Old Barafkhana Road, Station Road Alwar.

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Sanjay Gupta S/o Late Shri Narayan Datta Gupta, Partner Modern Machinery Store R/o Heera Ice Factory, Old Barafkhana Road, Station Road Alwar.

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Deepti Gupta W/o Shri Sanjay Gupta, Through Partner Mordern Machinery R/o Heera Ice Factory, Old Barafkhana Road, Station Road Alwar.

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----Petitioners

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Versus

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Rajesh Kumar Gupta S/o Late Shri Kishorilal Gupta, R/o N.e.b. Alwar, Rajasthan.

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----Respondent

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For Petitioner(s)	: Mr. Mohit Gupta, Adv.
For Respondent(s)	: Mr. Gajender Singh Rathore, Adv.

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HON'BLE MR. JUSTICE NARENDRA SINGH DHADDHA

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Order

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11/12/2024

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This Civil Writ Petition has been filed by the petitionersdefendants (for short ‘the defendants’) under Article 227 of the Constitution of India against the order dated 13.12.2019 passed by Additional District Judge No.3, Alwar in Civil Suit No.34/32/18 whereby the trial Court allowed the application filed by the defendants and permitted them to defend their case by filing the written statement, provided they furnish a Bank Guarantee of Rs. 5 lakh to the satisfaction of the trial Court within a month from the date of the order.

(2 of 2)

[2024:RJ-JP:50959]

[CW-1748/2020]

At the very outset, learned counsel for the defendants submits that the condition imposed by the trial court requiring the defendants to furnish the bank guarantee for defending their case has been held illegal and the same has been set aside by this court in the case of Hotel Paras & Anr. Vs. Sound Vision (Civil Revision Petition No.1221/1997) decided on 27.04.1998.

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Heard learned counsel for the defendants and perused the impugned order.

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This Court in the case of Hotel Paras & Anr. (supra) held as under:-

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“order granting leave to defend with condition to furnish bank guarantee equivalent to the suit amount is not legally sustainable because imposition of such a condition travels beyond the scope of the discretion given to the Judge under the above provisions while granting leave to defend.”

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In view of the above, condition requiring the defendants to furnish the Bank Guarantee of Rs.5 lakh to defend their case by filing the written statement is set aside and instead the defendants are directed to furnish the solvent security of the like amount to the satisfaction of the trial court. Order dated 13.12.2019 passed by the trial Court is modified to the aforesaid extent and rest part of the order dated 13.12.2019 passed by the trial court shall remain unchanged.

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Accordingly, this civil writ petition stands disposed of.

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(NARENDRA SINGH DHADDHA),J

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AVINASH GULERIA /302

Modern Machinery Store v. Rajesh Kumar Gupta S/O Late Shri Kishorilal Gupta

Case brief

What is this about?

What did the court decide?

Modern Machinery Store v. Rajesh Kumar Gupta S/O Late Shri Kishorilal Gupta

Case brief

What is this about?

What did the court decide?

What the court decided

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