TMI Blog1998 (4) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... it was brought by the respondents on the basis of bills of exchange in respect of which the appellants are the acceptors. M/s. Khanna Sales Corporation are the grawees of the bill who have Local Bill Discounting facility with the respondents. Under the said facility, M/s. Khanna Sales Corporation discounted the bills of exchange. The respondent bank made payments to M/s. Khanna Sales Corporation on the basis of the bills of exchange. Since the amounts under the Bills of Exchange were not paid and received by the respondent bank when they were presented within the stipulated time and since demand did not come for to despite notice of demand, the respondent bank filed a summary suit as aforesaid. Nine bills of exchange had been drawn by M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exchange in question. On that basis they took the view that pleas raised by the appellants were frivolous and have no substance and merits in their defence. In this appeal it is contended that what should be examined at the stage of grant of leave to defend is whether there was a real or a snam defence and whether the facts alleged by the appellants if established would be a good defence and the trial court should go into the question whether the facts alleged were true or not, as that situation would arise only after leave was granted and at the trial. That a condition as to security could be imposed if the Court was of the opinion that the defence was out forward with a view to prolong this suit. The position in law has been explain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or otherwise secured. In fact in identical matters on the file of the said High Court in summary suit No. 2963 of 1990 Dena Bank vs. M/s. Sunil Enterprises and summary suit No.1193 of 1989 Bank of India vs. Mahendra Sarabhai Choksi, leave to defend had been granted to defendants. In those cases the circumstances arising are that the Bills of Exchange were accepted by the defendant even though they had already discharged earlier. Bills of Exchange as and when they were due and the bank had continued to pay out such large amounts of Bills of Exchange accepted by the party who is already a defaulter. It is also contended that some of the Bills of Exchange were mere secondary documents and, therefore, these matters require examination. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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