Principles governing the grant of leave to defend a Summary suit:
Change in law as per amended Order XXXVII Rule 3 of the Code of Civil Procedure.
Good faith, genuineness of defence and triable issue is a consideration:
A Bench of Supreme Court comprising Justice Kurian Joseph and Justice RF Nariman has observed that the principles stated in paragraph 8 of Mechelec Engineers & Manufacturers v. Basic Equipment Corporation will now stand superseded, post amendment of Order XXXVII Rule 3 of the Code of Civil Procedure and in view of a four-judge bench decision in Milkhiram (India) (P) Ltd. v. Chamanlal Bros.
If the defendant satisfies the Court that he has a substantial defence, that is, a defence that is likely to succeed, the plaintiff is not entitled to leave to sign judgment, and the defendant is entitled to unconditional leave to defend the suit;