M/S FIXITY PACKAGING INDUS.P.LTD. vs UDYEN JAIN(HUF)

The Supreme Court upheld the High Court's decision regarding the denial of leave to defend in a summary suit under Order XXXVII of the Code of Civil Procedure. The Court found that the defendants had no plausible defense against the dishonored cheques amounting to Rs. 2,66,39,028/-, supported by admissions in the notice reply and statements of accounts. However, the Court granted conditional leave to defend, requiring a deposit of Rs. 2,00,00,000/- to protect the plaintiff's rights, emphasizing the need for a balance between mercy and the plaintiff's entitlement to recover funds.