IN THE HIGH COURT AT CALCUTTA
Sanjib Banerjee, J.
BERGER PAINTS INDIA LIMITED
Versus
ASHISH CHATTOPADHYAY & OTHERS
GA No. 3551 of 2003 CS No. 269 of 2003
Decided On : September 4, 2008.
ADMISSION - CONFESSION OF GUILT - COERCION - LIMITATION - ACKNOWLEDGEMENT OF DEBT - ORAL EVIDENCE - ORDER XII RULE 6 OF THE CODE OF CIVIL PROCEDURE, 1908 - SECTION 18 OF THE LIMITATION ACT, 1963 - SECTION 25 OF THE CONTRACT ACT, 1872 - ORDER XXXVII OF THE CODE OF CIVIL PROCEDURE, 1908 - CHAPTER XIIIA OF THE RULES ON THE ORIGINAL SIDE OF THE CALCUTTA HIGH COURT - ADMISSION OBTAINED UNDER COERCION - RELIABILITY - LIMITATION PERIOD - ACKNOWLEDGEMENT OF DEBT - ORAL EVIDENCE - PROMISE TO PAY - ENFORCEABILITY.
Fact of the Case:
An employee of the plaintiff company allegedly embezzled substantial sums of money by creating fictitious entries in vouchers for payments. The plaintiff filed a suit for judgment on admission based on two undated documents written by the employee and his father, in which they acknowledged the embezzlement and promised to refund the money. The defendants, including the employee and his relatives, contested the authenticity of the admissions, claiming that they were obtained under coercion at the police station.
Finding of the Court:
The court found that the admissions were reliable and that the defendants had failed to provide a satisfactory explanation for the flow of funds from the plaintiff's account to their own accounts. The court also held that the claim was not barred by limitation, as the plaintiff had filed the suit within four months of discovering the embezzlement.
Issues: 1. Whether the admissions were obtained under coercion and were therefore unreliable. 2. Whether the claim was barred by limitation.
Ratio Decidendi: 1. The court held that the admissions were not obtained under coercion, as the defendants had not provided any specific evidence to support their claim. The court also noted that the admissions were detailed and specific, and that the defendants had not attempted to provide any alternative explanation for the flow of funds. 2. The court held that the claim was not barred by limitation, as the plaintiff had filed the suit within four months of discovering the embezzlement. The court also noted that the defendants had not referred to the schedule to the Limitation Act, which would have been necessary if they were arguing that the claim was barred by limitation.
Final Decision: The court granted a decree in favor of the plaintiff for the sum of Rs. 32 lakh, to be paid jointly and severally by the employee and his father. The court also ordered that the injunction restraining the defendants from disposing of their immovable properties would continue until the payment was made.
SANJIB BANERJEE, J. : –
The plaintiff alleges that an employee had defalcated substantial sums by making fictitious entries in vouchers presented for payment and seeks judgment on admission on the basis of two undated documents written out by the employee and his father wherein the embezzlement is said to have been acknowledged and a promise made for refund.
2. The plaintiff says that between September, 2000 and December, 2002 the first defendant employee caused seven cheques to be issued by the plaintiff in favour of the defendant no. 6 (whether in the name of Dimensions or Dimensons) without the plaintiff having received any goods or services from the payee. It was only in “the beginning of May 2003” that the plaintiff says that the alleged defalcation was detected in course of reconciliation of accounts. It is alleged that the first defendant caused certain vouchers to be prepared and presented to the accounts department and induced the accounts personnel of the plaintiff to issue cheques on the first defendant’s representation that payments were due from the plaintiff to the sixth defendant on account of goods purchased or services received.
3. At paragraph 15 of the petition it is averred that upon the first defendant being apprised of the discovery of the misappropriation of funds of the plaintiff, the first defendant and his father, the third defendant, “came to the office of the (plaintiff), and admitted their unconditional liability to pay the moneys misappropriated by the (defendant) no. 1 from the till of the (plaintiff).” The copies of the two documents said to have been written out by the first and third defendants are appended to the petition. The plaintiff has also relied on a complaint of May 12, 2003 made to the Park Street Police Station where the first defendant’s written admission is referred to.
4. The plaintiff has attempted to trace the flow of the money corresponding to the seven cheques and the defendants other than the employee have been impleaded as the direct or ultimate recipients of the funds wrongfully caused by the first defendant to be paid out by the plaintiff. Subpoenas were issued to several banks for producing the relevant cheques or copies thereof and the documents tendered by the banks have been open to inspection. The plaintiff has mapped the course of the funds in a chart which has been annexed to a supplementary affidavit filed by it from which the plaintiff seeks to demonstrate that shortly upon each of the seven cheques issued by it having been encashed by the sixth defendant, the money flowed into the accounts of the other defendants or were paid in cash to the other defendants.
5. The first and third defendants accept in their respective affidavits that they had executed the two documents that the plaintiff has relied upon as written admission of the first defendant’s guilt and offer of refund. The son and father, however, claim that such documents were obtained by coercion at the Park Street Police Station and should be altogether disregarded at this stage and the plaintiff should be required to establish first that the admission was voluntarily made by them.
6. The letters of the first and third defendants are in Bengali. The first defendant addressed his undated letter to the managing director of the plaintiff where he says that he made and cleared false bills in the name of the sixth defendant. He gives the particulars of the cheques that have been mentioned in the plaint and details how he used Rs.28.25 lakh out of the total of Rs.33 lakh in acquiring flats at Prasad Nagar and Beliaghata, a Maruti Zen car and making cash payments to his first wife, his alleged second wife, a brother of his second wife and a business partner. The letter proceeds to record the addresses of the second, third, fourth, fifth and ninth defendants. The first defendant thereafter undertakes to sell the Beliaghata and Udaynarayanpur properties, the car and his wife’s movables and promises to m
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.