Sify Ltd vs First Flight Couriers Ltd

The Supreme Court held that under Order 37 Rule 3(5) of the Code of Civil Procedure, the court has the discretion to grant leave to defend either unconditionally or upon terms deemed just. The Court found that the Division Bench of the Bombay High Court erred in granting unconditional leave to the respondent without considering the merits of the appellant's claim for payment of dues. Consequently, the Supreme Court set aside the High Court's order and reinstated the condition imposed by the Single Judge for the respondent to deposit Rs. 15 lacs to defend the suit.