Disposed

Modern Machinery Store v. Manish Kumar Gupta S/O Shri Ratan Lal Gupta

Rajasthan HC12 Dec 2024CW/588/2023

Case brief

AI extract

What is this about?

Writ petition under Article 227 against a trial court order conditioning leave to defend on furnishing a bank guarantee. Relying on its earlier decision in Hotel Paras, this Court held such a condition unsustainable and substituted solvent security of the like amount, modifying the impugned order to that extent.

What did the court decide?

Condition to furnish bank guarantee set aside; defendants directed to furnish solvent security of Rs. 2.5 lakhs instead.

Modern Machinery Store Vs Manish Kumar Gupta S/O Shri… — Property and Title | Rajasthan HC (2024)

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[2024:RJ-JP:51116]

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

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S.B. Civil Writ Petition No. 588/2023

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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 Modern 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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Manish Kumar Gupta S/o Shri Ratan Lal Gupta, R/o N.e.b. Alwar, Rajasthan.

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		----Respondent
For Petitioner(s)	: Mr. Mohit Gupta
For Respondent(s)	:

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HON'BLE MR. JUSTICE NARENDRA SINGH DHADDHA

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Order

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12/12/2024

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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 21.11.2022 passed by Additional District Judge No.4, Alwar in Civil Suit No.238/2022 whereby the trial Court allowed the application filed by the defendants and permitted them to defend their case by filing written statement and adduce their evidence, provided they furnish a Bank Guarantee of Rs. 2.5 lakhs.

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At the very outset, learned counsel for the defendants submits that the condition imposed by the trial court requiring the

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(2 of 2) [CW-588/2023]

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[2024:RJ-JP:51116]

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defendants to furnish the bank guarantee of Rs.2.5 lakhs 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.2.5 lakhs to defend their case by filing the written statement and adduce their evidence 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 21.11.2022 passed by the trial Court is modified to the aforesaid extent and rest part of the order dated 21.11.2022 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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Ritu/104

Modern Machinery Store v. Manish Kumar Gupta S/O Shri Ratan Lal Gupta

Case brief

What is this about?

What did the court decide?

Modern Machinery Store v. Manish Kumar Gupta S/O Shri Ratan Lal Gupta

Case brief

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