SUDIN DILIP TALAULIKAR vs POLYCAP WIRES PVT LTD

The Supreme Court addressed the issue of conditional leave to defend in a summary suit under Order XXXVII of the Code of Civil Procedure, 1908. It held that the Second Proviso to sub-Rule 5 of Rule 3 mandates that a condition for deposit cannot be imposed without admissible dues being established. The Court found that the respondent's withdrawal of a prior prosecution under Section 138 of the Negotiable Instruments Act did not bar the maintainability of the summary suit, affirming the lower court's discretion in ordering the deposit of Rs.30,00,000/- as a condition for leave to defend.