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High Court Of Calcutta
J. K. BISWAS
UIC FINANCE PVT.LTD. - Appellant
Versus
PHARMACEUTICALS PVT.LTD - Respondent
G. A. 849 Of 2003
Decided On : 12/02/2003
BILL OF EXCHANGE - JUDGMENT ON ADMISSION - ADMISSION OF LIABILITY IN LETTERS - INTERPRETATION OF ORDER XII, RULE 6, CPC - COURT'S POWER TO PASS JUDGMENT ON ADMISSIONS - ADMISSIONS MADE IN DOCUMENTS OTHER THAN PLEADINGS - APPLICABILITY OF SECTION 80, NEGOTIABLE INSTRUMENTS ACT, 1881 - INTEREST ON DISHONOURED CHEQUES.
Fact of the Case:
Plaintiff filed a suit for recovery of money due on two dishonoured cheques issued by defendant 1 in favour of the plaintiff. Defendant 1 admitted its liability in two letters written to the plaintiff. Plaintiff filed an application for judgment on admission.
Finding of the Court:
The court held that the letters written by defendant 1 contained clear admissions of its liability. The court also held that the plaintiff was entitled to rely on the admissions made in the letters for the purpose of passing a judgment on admission.
Issues: 1. Whether the court can pass a judgment on admission based on admissions made in documents other than pleadings? 2. Whether defendant 1 is liable to pay interest on the dishonoured cheques? 3. What is the rate of interest payable by defendant 1?
Ratio Decidendi: 1. Yes, the court can pass a judgment on admission based on admissions made in documents other than pleadings, as per Order XII, Rule 6(1) of the Code of Civil Procedure, 1908. 2. Yes, defendant 1 is liable to pay interest on the dishonoured cheques from the date of the notice of dishonour, as per Section 80 of the Negotiable Instruments Act, 1881. 3. The rate of interest payable by defendant 1 is 18% per annum, as provided in Section 80 of the Negotiable Instruments Act, 1881.
Final Decision: The court allowed the plaintiff's application in part and passed a decree against defendant 1 for the amount of Rs. 28,55,500/- with interest at the rate of 18% per annum from September 7, 1998, till the date of payment or realization. The court also directed defendant 1 to pay the advertisement expenses and costs of the application.
( 1 ) THIS application dated March 4th, 2003 has been taken out by the sole plaintiff in its pending suit (C. S. No. 303 of 2002); it is for judgment on admission. The prayers are as follows :" (A) Judgment upon admission and decree against the defendant No. 1 for a sum of Rs. 43,87,255/-; (b) Interim interest and interest on judgment at the agreed rate of 18% per annum on the balance principal sum of Rs. 28,45,500/-; (c) Ad interim order in terms of prayers above; (d) Costs; (e) Such further or other order or orders be made and direction or directions be given as to this Honble Court may deem fit and proper;"
( 2 ) THE suit was filed on July 9th, 2002. The prayers in the suit are the following :" (A) Decree for Rs. 43,87,255/- against the defendant No. 1; (b) Interim interest and interest on judgment at the agreed rate of 18 per cent per annum on the balance principal sum of Rs. 28,45,500; (c) Receiver; (d) Injunction; (e) Attachment before judgment; (f) Cost; (g) Further and/or other orders;"
( 3 ) THE facts contained in the pleading, briefly, are these. By a letter dated April 21 st 1998 defendant 1 requested the plaintiff to discount a bill for Rs. 32,1 l,000/ -. Defendant 1 enclosed a post dated cheque for Rs. 32,1 l,000/- with this letter. Again by a letter dated May 26th, 1998 defendant 1 requested the plaintiff to discount a bill for rs. 16,44,500/ -. With this letter also defendant 1 enclosed a post dated cheque; it was for Rs. 16,44,5007 -. The two bills were duly discounted, and payments were made by the plaintiff to defendant 2. The two post dated cheques issued by defendant 1 were dishonoured on presentation. The amounts due under the two instruments remained unpaid. On repeated requests by the plaintiff, under cover of its letter dated Sept. 7th, 1998, as against the bill discounting liability of Rs. 48,55,500/-, defendant 1 made a part payment of Rs. 20,000,00/ -. This payment was made by a cheque dated Sept. 8th, 1998. The balance of the liability amounting to Rs. 28,55,500/- remained unpaid. By letter dated Nov. 8th, 1998 the plaintiff demanded payment of this balance amount together with interest. The demand was repeated by subsequent letters, but defendant 1 did not make the payment. Defendant 1 became a sick company, and the proceeding concerned remained pending before the competent authorities during the period from Feb. 16th, 1999 to Feb. 1st, 2001. However, by a letter dated June 22nd, 1999 defendant 1 informed the plaintiff that due to financial crisis it was unable to make the payment.
( 4 ) IN the pending suit this application for judgment on admission has been filed. Notices of this application could not be served by the plaintiff at the last known addresses of the defendants, as none of the defendants were found available there. The plaintiff took out an application (G. A. No. 2553 of 2003) for leave to take steps for substituted service. By order dated July 23rd, 2003 Ansari, J. was pleased to allow such application. An affidavit of service dated august 8th 2003 has been filed stating that in terms of order dated July 23rd, 2003 notice of this case was published in two newspapers. However, no one entered appearance for the defendants. In the circumstances by order dated August llth, 2003 this application was directed to appear as adjourned motion. On Oct. 28th, 2003 it was taken up for hearing. On this date also no one appeared for the defendants. The matter was again adjourned for a week. Then it was taken up on Nov. 6th, 2003 when also no one appeared for the defendants. After hearing the learned counsel for the plaintiff, the matter was directed to appear for orders on the next day. On Nov. 7th, 2003 also no one appeared for the defendants. In the circumstances hearing has been concluded ex parte.
( 5 ) BY referring to the two letters Sept. 7th, 1998 and June 22nd, 1999 the learned counsel for the plaintiff has submitted that defendant 1 clearly admitted its liability to the e
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