M/S. UMA SHANKAR KAMAL NARAIN vs M/S. M.D. OVERSEAS LTD.

The Supreme Court upheld the Delhi High Court's decision to grant conditional leave to the appellants to defend in a summary suit under Order XXXVII Rule 1 of the Code of Civil Procedure, 1908. The Court noted that the appellants' defense was deemed a 'moonshine defense' by the High Court, as it lacked substantial merit regarding the transaction and delivery of goods. The Court affirmed the High Court's order requiring the appellants to deposit the amount of Rs.39,30,856/- to the registry, with the condition that failure to do so would result in the decree becoming operative.