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Judgment
Special Leave granted.
Heard counsel on both sides. This is an appeal filed against the order dated 3rd November, 1998 passed by the learned" Single Judge of the High Court of Bombay granting unconditional leave to defend the suit. The said suit was filed by the appellant under Order XXXVII Rule I seeking recovery of a sum of Rs. 3.15 Crores with interest on the said amount from the date of suit at the rate of 18% per annum.
The appellant-plaintiff relied upon a letter dated 14th July, 1992 wherein the Managing Director of the defendant company confirmed that the said company owed Rs. 3.15 Crores to the appellant-plaintiff. It was stated that they were immediately unable to pay the said amount and that they were prepared to provide adequate security for the said amount. The suit was filed on (?).
Now four years have lapsed from the date of filing the suit. In the circumstances', we modify the order of the High Court by granting leave to defend subject to the condition that the Respondent will deposit in the trial court principal amount of Rs. 3.15 Crores within three months from today. In default of compliance with the order, the defence will stand struck off and the trial court will then proceed in accordance with law.
The amount if deposited by the defendant will be invested in a fixed deposit for such period as the trial court may think it fit. In case the money is deposited the same will be permitted to be withdrawn by the appellant.
The appeal is disposed of accordingly.