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2000 Supreme(Cal) 499

IN THE HIGH COURT AT CALCUTTA
Pinaki Chandra Ghose, J.
Magma Leasing Limited - Petitioner
Versus
S. & S. Industries & Enterprises Ltd. - Respondent
G. A. No. 1970 of 1999 & C. S. No. 185 of 1999
Decided on : September 26, 2000

An admission of liability in writing, which is unequivocal and unambiguous, and which is made in the context of a commercial transaction, is sufficient to support a judgment upon admission under Order 12 Rule 6 of the Code of Civil Procedure.

Headnote:

ORDER 12 RULE 6 CPC - JUDGMENT UPON ADMISSION - O. 12 R. 6 CPC - SUMMARY JUDGMENT ON ADMISSION - ADMISSION OF LIABILITY IN WRITING - SUFFICIENCY - EFFECT OF ADMISSION - DISCRETION OF COURT.

Fact of the Case:

Petitioner filed an application for judgment upon admission in favor of the petitioner for a sum of Rs. 25,93,275.80p. The petitioner relied on a revised schedule of payment forwarded by the respondent and a demand promissory note executed by the respondent. The respondent admitted the balance sum outstanding to the petitioner and the delayed payment charges, aggregating to a sum of Rs. 25,93,275.80p. The respondent issued two cheques towards payment of its admitted dues, which were dishonored on presentation.

Finding of the Court:

The court held that the respondent unequivocally and unambiguously admitted its liability to pay a sum of Rs. 25,93,275.80p. to the petitioner. The court further held that the admission of liability was in writing and was sufficient to support a judgment upon admission under Order 12 Rule 6 of the Code of Civil Procedure.

Issues: Whether the respondent's admission of liability was sufficient to support a judgment upon admission under Order 12 Rule 6 of the Code of Civil Procedure.

Ratio Decidendi: The court held that the respondent's admission of liability was sufficient to support a judgment upon admission under Order 12 Rule 6 of the Code of Civil Procedure because: (1) the admission was in writing; (2) the admission was unequivocal and unambiguous; (3) the admission was made in the context of a commercial transaction; and (4) the admission was not denied by the respondent.

Final Decision: The court granted the petitioner's application for judgment upon admission and directed that a decree be drawn up for the sum of Rs. 25,93,275.80p. against the respondent.

Judgment

1. This is an application for judgment upon admission in favour of the petitioner for a sum of Rs. 25,93,275.80p. and, accordingly, a decree may be passed and further the balance claim of the petitioner may be relegated to the suit.

2. The petitioner relied upon a revised schedule of payment forwarded by the respondent by a letter dated 28th May, 1998 by which the respondent sought extension of time to pay as per such revised schedule.

3. On July 1, 1998, the respondent executed a demand promissory note promising to pay to the petitioner a sum of Rs. 26,85,575/-. On 31st July, 1998, the respondent clearly, unequivocally and unambiguously admitted that as on the date of the said letter, the balance sum outstanding by the respondent to the petitioner stood at Rs.21,51,800/- and delayed payment charges of Rs. 4,41,475.80p. became due and payable thereon, aggregating to a sum of Rs. 25,93,275.80p. which is according to the petitioner an admission on the part of the respondent to the extent of the said amount.

4. It further appears that on 31st July, 1998, the respondent forwarded two cheques both dated 31st July, 1998 towards payment of its admitted dues, being the amounts as aforesaid, by the respondent. The said cheques were dishonoured on presentation.

5. These facts have not been denied by the respondent in their affidavit-in-opposition. On the contrary, the respondent has merely attempted to allege that an understanding had been arrived at with the petitioner to the effect that payment of the said sum would be made upon receipt of funds from external sources in respect of the said cheques.

6. It is also alleged that the petitioner assured the respondent that the said cheques would not be encashed without confirmation of and reference to the respondents. The facts remains that the respondents have admitted the said amount aggregating to a sum of Rs. 25,93,275.80p.

7. The only point was taken by Mr. Banerjee appearing on behalf of the respondent that admission must be a post-suit admission under Order 12 Rule 6. He further contended that there must be an admission in accordance with the said Order 12 Rule 6 that such admission must be in the pleadings or otherwise. According to him, no written statement has been filed. Therefore, no scope for passing a judgment upon admission on any pleading and there is no oral admission. According to him, the admission must be to the effect that the plaintiff is entitled to the relief claimed in the suit. In support of his such contention, he relief upon the judgments reported in (1) 55 Law Times 42, Landergan v. Feast; (2) 23 CWN 1017, Koramall Ramballav v. Mongilal Dalimchand; (3) 27 CWN 783, J. C. Galsiaun v. E. D. Sassoon & Co.

8. In reply learned Counsel appearing on behalf of the petitioner submitted that the decision reported in 55 Law Times 42 (supra). has no application. He further contended that in the judgment reported in 23 CWN 1017 (supra), the Court was of the opinion that the admission of the defendant was not an unconditional admission and in a case reported in 27 CWN 783 (supra), the Court was also of the opinion that the admission of the defendant was not a clear admission, but according to him, in the instant case, there can be no dispute whatsoever that the defendant unequivocally, unambiguously, admitted its liability to pay a sum of Rs. 25,93,275.80p. to the petitioner.

9. He also drew my attention to a passage of the Division Bench decision of the Orissa High Court in the matter of (4) Haribansa Misra & Ors. v. Banshidhar Mohanty reported in AIR 1978 NOC 290 (Orissa). It would be proper for me to reproduce the paragraph which has been relied upon by him, which is as follows :

"There can be no justification in law for the position that even if a party admitted that the truth was one way, nearly because the pleading had not been raised to admit the admission into record, the admission should be kept away and even if it was unjust, on the technical rule of pleadings, and a











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