Wada Arun Asbestos (P) Ltd vs Gujarat Water Supply & Sewerage Board

The Supreme Court held that under Order 37 Rule 3(6)(b) of the Code of Civil Procedure, a conditional leave to defend is deemed refused if the defendant fails to comply with the deposit condition. The High Court's decision to set aside the decree and remit the matter for trial was upheld, emphasizing that the defendant's non-compliance should not preclude a fair hearing on the merits of the case. The Court affirmed the importance of balancing procedural requirements with the principles of justice, allowing the defendant an opportunity to present their case.