Mechalec Engineers vs Basic Equipment Corp: Unconditional Leave in Indian Civil Procedure, Summaries of Civil procedure

Download Mechalec Engineers vs Basic Equipment Corp: Unconditional Leave in Indian Civil Procedure and more Summaries Civil procedure in PDF only on Docsity! CASE BREIF : MECHELEC ENGINEERS AND MANUFACTURERS V. BASIC EQUIPMENT CORPORATION CITATION : 1977 AIR 577 COURT : Supreme Court of India BENCH : A.N. Ray, C.J , M.H Beg, Jaswant Singh, JJ. PARTIES PETITIONER : MECHELEC ENGINEERS AND MANUFACTURERS RESPONDENT:  BASIC EQUIPMENT CORPORATION DECIDED ON: 1 November, 1976 FACTS  The case in question stemmed from a summary suit that Basic Equipment Corporation filed against Mechalec Engineers and Manufacturers in an attempt to recover money totaling about 21,000 rupees plus 12% annual interest.  Mechalec Engineers requested leave to defend in accordance with Order 37, Rule 3 of the CPC, and the trial court first gave them unconditional leave.  However, the decision was changed to grant conditional leave to defend after the Delhi High Court revised it in accordance with Section 115 of the CPC.  This required the full amount to be deposited, plus 6% interest annually. Mechalec Engineers then filed a Special Leave Petition in the Supreme Court to challenge the High Court's ruling. ISSUES Could the High Court interfere, in exercise of its powers under section 115, Civil Procedure Code, with the discretion of the Additional District Judge, in granting unconditional leave to defence to the defendant-appellant upon grounds which even a perusal of the order of the High Court shows to be reasonable ? ARGUMENTS RATIO DECENDI The ruling in this case upheld the precepts established in previous cases such as Smt. Kiranmoyee Dassi v. Dr. J. Chatterjee and Jacobs v. Booth's Distillery Co. It established that a