Supreme Court has held that when the High Court is deciding a reivsion petition concerning leave to defend, it should confine itself to the issue raised and should not dismiss the suit itself.
In a suit filed under Order XXXVII of the Code of Civil Procedure, 1908 in respect of a liability arising out of issuance of a Cheque for Rs.10,00,000/- (Rupees ten lakhs only), the Trial Court had granted unconditional leave to defend to the defendants in question. Said order was carried in revision by the original plaintiff before the High Court. While considering the revision at the admission stage, the High Court dismissed the suit itself.
When the matter reached the Supreme Court, it observed and held “The scope of the matter before the High Court was completely
limited and the matter ought to have been confined to the issue whether the leave to defend was rightly granted or not. In our view, the High Court ought not to have dismissed the suit itself. We, therefore, set-aside the order passed by the High Court and restore the revision petition before the High Court, which may be disposed of in accordance with law”.