Headnote:
Constitution of India,1950 - Article 227 – Civil Procedure Code,1908 - Order VI - Rule 16 - transferred - claim of the plaintiffs society - plaintiff-respondent M/s. Future Builders Co-op. Housing Society (in short “the plaintiff Society”) filed a suit against the defendant-appellants for declaration of title in respect of the property mentioned in the schedule of the plaint (in short “the suit property”) and for perpetual injunction restraining the defendants from interfering with possession. The case of the plaintiff-Society is that the Society is a registered Society under the Andhra Pradesh Co-operative Societies Act with the object to acquire or purchase land for the benefit of its members and render it fit for habitation. The Society was founded by several promoters including the first defendant-S. Malla Reddy (appellant herein). The plaintiff’s further case is that for the purpose of registration under Co-operative Societies Act, it was necessary to show to the Registrar that they have entered into an agreement for purchase of land for the benefit of its members. It was alleged that before the Society was registered, its promoters identified the suit land as fit for the purpose and negotiated with the owner and entrusted the work to the first defendant for effecting purchase after measurement and a sum of Rs. 10,000/- was paid to him. The first defendant alleged to have executed an agreement on 8.3.1978 in favour of the Chief Promoter of the Society, inter alia, agreeing that the first defendant will get the land measured and obtain legal opinion and pay the money to the land owner –Held, petition held that the defendant-appellants cannot be allowed to substitute their earlier written statement filed in the suit whereunder there was an admission of the claim of the plaintiff-Society (respondent herein). Similarly in the revision filed by the defendants, the High Court considered all the decisions referred by the defendants on the issue as to whether the defendants can withdraw the admission made in the written statement and finally came to the conclusion that the defendant-appellants cannot be allowed to resile from the admission made in the written statement by taking recourse to Order VIII Rule 9 or Order VI Rule 16 CPC by seeking to file a fresh written statement. In the aforesaid premises, filing of a fresh petition by the defendants under Order VI Rule 17 CPC after about 13 years when the hearing of the suit had already commenced and some of the witnesses were examined, is wholly misconceived. The High Court in the impugned order has rightly held that filing of subsequent application for the same relief is an abuse of the process of the court. As noticed above, the relief sought for by the defendants in a subsequent petition under Order VI Rule 17 CPC was elaborately dealt with on the two earlier petitions filed by the defendant-appellants under Order VI Rule 16 and Order VIII Rule 9 CPC and, therefore, the subsequent petition filed by the defendants labelling the petition – appeal dismissed

Judgement Key Points

Key Points: - An admission made in the written statement binds the party and cannot be withdrawn to substitute with a new case (!) (!) (!) . - Filing a fresh petition under Order VI Rule 17 CPC after the trial has commenced and witnesses examined is not permissible and amounts to an abuse of court process (!) (!) . - Petitions under Order VI Rule 16 and Order VIII Rule 9 cannot be used to withdraw or substitute an admission already made in the written statement (!) (!) (!) .

What is the effect of an admission made in a written statement regarding the plaintiff’s claim?

Can a party file a fresh written statement under Order VI Rule 17 CPC after the trial has commenced and witnesses have been examined?

Are petitions under Order VI Rule 16 and Order VIII Rule 9 available to withdraw or substitute an admission already made in the written statement?

Judgment :-

M.Y. Eqbal, J.

Leave granted.

2. The defendants (appellants herein) have assailed the common order dated 28.12.2007 passed by a learned Judge of the Andhra Pradesh High Court, whereby the Revision Petitions filed by the plaintiff-respondent (M/s Future Builders Coop Society) under Article 227 of the Constitution of India have been allowed and the order passed by the trial court allowing amendment in the written statement has been set aside.

3. The facts of the case lie in a narrow compass.

4. The plaintiff-respondent M/s. Future Builders Co-op. Housing Society (in short “the plaintiff Society”) filed a suit against the defendant-appellants for declaration of title in respect of the property mentioned in the schedule of the plaint (in short “the suit property”) and for perpetual injunction restraining the defendants from interfering with possession. The case of the plaintiff-Society is that the Society is a registered Society under the Andhra Pradesh Co-operative Societies Act with the object to acquire or purchase land for the benefit of its members and render it fit for habitation. The Society was founded by several promoters including the first defendant-S. Malla Reddy (appellant herein). The plaintiff’s further case is that for the purpose of registration under Co-operative Societies Act, it was necessary to show to the Registrar that they have entered into an agreement for purchase of land for the benefit of its members. It was alleged that before the Society was registered, its promoters identified the suit land as fit for the purpose and negotiated with the owner and entrusted the work to the first defendant for effecting purchase after measurement and a sum of Rs. 10,000/- was paid to him. The first defendant alleged to have executed an agreement on 8.3.1978 in favour of the Chief Promoter of the Society, inter alia, agreeing that the first defendant will get the land measured and obtain legal opinion and pay the money to the land owner. It was agreed that the sale deed would be obtained in the name of the first defendant and a patta would be got transferred in his name or of his nominee for the benefit of the Society. The Society was registered on 28.08.1981 and defendant No.1 having obtained a Sale Deed dated 02.01.1979 and transfer of patta in the name of himself and defendant Nos. 2 to 4 (appellants herein), who are his wife and sons in respect of the suit property, had delivered possession to the Society and they further agreed to secure the patta in the name of the plaintiff-Society. A Memorandum of Agreement dated 16.09.1981 was also executed to the effect that the plaintiff would hold the land as owner. It was alleged by the plaintiff-Society that the defendants, in spite of several requests and demands, were postponing the transfer of patta in respect of the suit property in its name on one pretext or the other. Hence, suit.

5. On being summoned, the defendants appeared and filed a joint written statement on 19.01.1995 admitting the claim of the plaintiff stating that after filing of the suit there was a mediation wherein the dispute was settled and, accordingly, a sum of Rs. 1,00,000/- was paid to them and they were then willing to transfer the patta in respect of the suit property in favour of the plaintiff who had already acquired title. The defendants, therefore, prayed to the court to decree the suit.

6. Controversy started when the defendants after filing of the written statement and admitting the claim of the plaintiff filed a petition being I.A. No.2217 of 1995, later renumbered as I.A. No.162 of 2000, seeking permission to change their advocates on the ground that they were acting detrimental to their interest by filing written statement contrary to the instructions. The said petition was objected by the plaintiff. The trial court by order dated 07.02.2000 permitted the defendants to change their advocates without prejudice to the rights of the parties. Thereafter, defendants filed another petiti

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