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2019 Supreme(Bom) 284

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S. PATEL, J.
K. RAHEJA CORP PVT LTD. - Appellant
Versus
MAHARASHTRA TOURISM DEVELOPMENT CORPORATION LTD. - Respondent
Notice of Motion No. 270 of 2016; Suit No. 3762 of 2002
Decided on : 12-02-2019

Advocates:
Advocate Appeared:
Pradeep Sancheti, Adv., Sanidha Vedpathak, Adv., Maneksha, Adv., Sethna, Adv., S.P. Bharti, Adv.

Headnote:

Civil Procedure Code 1908 - Order XII - Rule 6 – Claim of compensation - Court has jurisdiction - Wrongfully and unlawfully terminated by sole Defendant - Order to finalize and execute lease deed - Plaintiff claims that a Memorandum of Understanding between parties came to be wrongfully and unlawfully terminated by sole Defendant by its letter a copy of which is at Exhibit Q to the Plaint - First prayer in the suit is for a declaration in these terms - Second prayer is for a refund of an amount with interest and further interest - Next prayer is a money claim in amount with interest as per particulars of claim at Exhibit Y to Plaint - This Exhibit makes it clear that the relief in prayer clause is for cumulative interest - Previous Exhibit X sets out expenses allegedly incurred by Plaintiff while preparing the plot in question at MIDC - Next Plaintiff seeks a declaration that property that is the subject matter of is charged with the repayment of these amounts - Then there are the usual prayers for enforcement of that charge in default of payment - There is no prayer whatsoever for specific performance of MOU - A copy of that MOU is at Exhibit B to Plaint from page - Agreement is between Defendant Maharashtra Tourism Development Corporation Ltd a Government of Maharashtra undertaking and Plaintiff - It is in respect of a lease of land at village – Held, Court say that since the Plaintiff who failed to discharge their obligation under MOU resulting into termination of said MOU by the Defendant alleged that the termination was wrong arbitrary and illegal Defendant averred in the Written Statement about their readiness and willingness of their part under MOU in order to justify and substantiate the ground for termination and Defendant would have performed their part of obligation as per MOU if Plaintiff would have performed their part of the obligation avoiding termination - Is this explanation good Is it bad - This is not the time to determine those questions - At some point in the trial Defendants witness will be confronted with this - But it does emerge from this extract apart from the portions of Written Statement that have been set out above that the so-called admission in paragraph of Written Statement on which the Plaintiff places such emphasis is certainly not of kind that would justify a decree under Order XII Rule 6 of the CPC - It is no admission at all - In objects and reasons set out while amending Rule 6 of Order 12 CPC it is stated that where a claim is admitted court has jurisdiction to enter a judgment for the Plaintiff and to pass a decree on admitted claim - Object of the rule is to enable the party to obtain a speedy judgment at least to extent of the relief to which according to the admission of the defendant - Plaintiff is entitled - Words emphasized above are important – Defendant MTDC does not agree that the Plaintiff is entitled to specific performance - It says in terms that the Plaintiff is not entitled to specific performance - It has always said so - What the Plaintiff is doing is to substitute pleading and proof of its own readiness and willingness by relying on Defendants assertion that Defendant was always ready and willing - This is what is lost in translation - What MTDC is really saying is no admission at all - It is saying that although MTDC was always ready and willing to perform its obligations Plaintiff was not, and hence termination - This is the averment in full - Law is settled too that an pleading must be read in full - There can be no admission of a case not pleaded - On any reading of Written Statement as a whole it cannot be said that Defendants case is that Plaintiff is now entitled to the relief of specific performance - Defendant has at quite extensive length disputed this altogether and set out circumstances in which that perhaps infelicitously worded averment came to be made in paragraph and that is all that it is – Order accordingly

JUDGMENT :

G.S. PATEL, J.

1. The Applicant/Plaintiff seeks a judgment on admission against the sole Defendant on the basis of an averment made in paragraph 2 of the Written Statement. I have heard Mr. Sancheti for the Applicant/Plaintiff at some length and considered his submissions and the authorities that he places. I am not persuaded that there is sufficient cause made out for the grant of relief. I have also briefly heard Mr. Bharti for the Respondent/Defendant in opposition and considered his submissions as well.

2. Order XII Rule 6 of the Code of Civil Procedure 1908 ("CPC") reads thus:

"6. Judgment on admissions.-

(1) Where admissions of fact have been made either in the pleading or otherwise, whether orally or in writing, the Court may at any stage of the suit, either on the application of any party or of its own motion and without waiting for the determination of any other question between the parties, make such order or give such judgment as it may think fit, having regard to such admissions.

(2) Whenever a judgment is pronounced under sub-rule (1), a decree shall be drawn up in accordance with the judgment and the decree shall bear the date on which the judgment was pronounced."

3. This branch of the law is well settled. An admission, to serve as the foundation for judgment, must be clear, unambiguous and unequivocal.(Jeevan Diesels & Electricals Ltd v Jasbir Singh Chadha, (2010) 6 SCC 601)

There is a material distinction between an admission in a pleading and an admission in evidence: the former stands on a higher footing than the latter. (Nagindas Ramdas v Dalpatram Iccharam, (1974) AIR SC 471)

An admission in a pleading cannot be withdrawn by amendment. (BK Narayana Pillai v Parameswaran Pillai, (2000) 1 SCC 712)

None of this means, of course, that a judgment on admission must be delivered or granted merely for the asking. Any such application must necessarily satisfy these established principles. Further, it is settled law that Order 12 Rule 6 is subject to the provisions of Order 8 Rule 5, and that despite any such admission, a Court may nonetheless demand proof. (Razia Begum v Sahebzadi Anwar Begum, (1958) AIR SC 886)

This is the jurisprudential context.

4. The Plaintiff claims that a Memorandum of Understanding ("MoU") between the parties dated 20th May 1995 came to be wrongfully and unlawfully terminated by the sole Defendant by its letter of 29th November 1999, a copy of which is at Exhibit "Q" to the Plaint. The first prayer in the suit is for a declaration in these terms. The second prayer is for a refund of an amount of Rs. 29 lakhs with interest and further interest at the rate of 24% per annum. The next prayer is a money claim in the amount of Rs. 11,61,325/- with interest as per the particulars of claim at Exhibit "Y" to the Plaint. This Exhibit makes it clear that the relief in prayer clause (c) is for cumulative interest. The previous Exhibit "X" sets out expenses allegedly incurred by the Plaintiff while preparing the plot in question at MIDC. Next the Plaintiff seeks a declaration that the property that is the subject matter of the MoU is charged with the repayment of these amounts. Then there are the usual prayers for enforcement of that charge in default of payment.

5. There is no prayer whatsoever for specific performance of the MoU. A copy of that MoU is at Exhibit "B" to the Plaint from page 31. The agreement is between the Defendant, Maharashtra Tourism Development Corporation Ltd ("MTDC"), a Government of Maharashtra undertaking, and the Plaintiff. It is in respect of a lease of land at village Erangal Taluka Borivali, Mumbai.

6. Mtdc entered a Written Statement on 3rd December 2007. In paragraph 2 of this Written Statement, this is what the Defendant said:

"2. At the further outset, the Defendants say that they have always been and are still willing to perform their part of the Memorandum of Understanding (MOU) dated 20th March 1995 (Exhibit "B" to the Plaint and referred to as 'the suit Agreement') wher



























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