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2012 Supreme(Del) 1203

High Court of Delhi
MANMOHAN SINGH
Dimension Next Infocom (P) Ltd.
Versus
Samsung India Electronics Ltd. & Others
I.A. No. 1117 OF 2012 in CS(OS). No. 357 OF 2007
Decided on : 02-05-2012

Advocates appeared:
For the Plaintiff:M.S. Vinayak, with Vivek Sharma, Advocates.
For the Defendants:Joy Basu, with Niraj Singh, Advocates.

The central legal point established in the judgment is the requirement of unambiguous and clear admission in the written statement for the exercise of discretion under Order XII Rule 6 of the Code of Civil Procedure, 1908.

Headnote:

Order XII Rule 6 - Money Recovery - Code of Civil Procedure, 1908 - [Order XII Rule 6] - The court dismissed the plaintiff's application for money recovery as there was no specific existence of unambiguous and clear admission in the written statement by the defendants.

Fact of the Case:

The plaintiff filed a suit for recovery of dues amounting to Rs.29,21,796/- with interest. The defendants admitted certain facts in the written statement, based on which the plaintiff sought a decree for money recovery. The defendants contended that the suit was not maintainable as no cause of action was mentioned and raised issues regarding the agreements between the parties.

Finding of the Court:

The court found that there was no specific existence of unambiguous and clear admission in the written statement by the defendants, and therefore dismissed the plaintiff's application for money recovery.

Issues: The issues framed by the court included the discontinuation of the plaintiff's outlet as the defendants' brand shop, entitlement for compensation, existence of agreements beyond a certain date, and recovery of a specific sum towards promotion scheme and star power.

Ratio Decidendi: The court's decision was based on the lack of unambiguous and clear admission in the defendants' written statement, as required under Order XII Rule 6 of the Code of Civil Procedure, 1908.

Final Decision: The court dismissed the plaintiff's application for money recovery and granted a final opportunity to file evidence within four weeks.

JUDGMENT :

MANMOHAN SINGH, J.

1. By this order, I propose to dispose of the present application filed by the plaintiff under Order XII Rule 6 of the Code of Civil Procedure, 1908. The plaintiff has filed the suit for recovery of dues amounting to Rs.29,21,796/- with pendentelite and future interest @ 18% p.a.

2. The plaintiff submits that in paragraph 13 of the written statement, the defendants have admitted the email dated 30.09.2004 wherein the contents of the letter were –

“Hi Sanjay, Rent would be stopped from October onwards. I suggest let me take a clarity and get back to you. Please do not continue with rent till then.”

Thus, the plaintiff states that it was admitted itself by the defendants that rent was payable till October 2004.

3. The plaintiff further states that in paragraph 7 in the written statement the defendants, have admitted the arrangement of payment and also admits that bills were raised by the plaintiff on the defendants. The relevant extract from the written statement is as follows:-

“it is correct that the plaintiff had started the Samsung Brand shop with effect from 22nd February 2000. It is correct that as per agreement, a sum of Rs. 2,50,000/- and Rs. 1,50,000/- was to be paid by the answering defendants to the plaintiff as compensation for using the plaintiff outlet as their exclusive brand shop for the year 2001 and for the year 2002 and 2003 respectively. It is correct that bills were raised by the plaintiff on defendant No. 1.”

4. The plaintiff further states that on the basis on the admissions made by the defendants in their written statement a decree for money recovery may be passed.

5. Reply has been filed by the defendants. In the reply it is stated that the plaintiff have filed the present application with a malafide intention. The defendants further states that no fresh agreement for the year 2004 was executed for the usage of the outlet.

6. The defendants submit that the suit filed by the plaintiff is not maintainable, as no cause of action is mentioned. It is further averred that on 02.03.2001 an agreement was executed by and between the parties for using the plaintiff’s showroom as defendants’ brand shop. The said agreement expired in the month of December 2001. A fresh agreement was executed on 30.01.2002 for the year 2002 and on 30.01.2003 for the 2003 respectively. Thereafter no further agreement was executed.

7. Therefore, the defendants submit that the issues framed by this Court are triable issues and cannot be adjudicated merely on admissions of few facts in the written statement.

8. The issues were framed on 08.08.2011in presence of the plaintiff. The issues are as follows:-

a. Whether the defendants discontinued with the outlet of the plaintiff as their brand shop? If yes from which date? OPP

b. Whether the plaintiff is entitled for compensation on account of the use of the plaintiff’s showroom by defendants for their brand shop? If yes, then at what rate? Whether the defendant is liable to pay interest @ 18% on the said amount of compensation? OPP

c. Whether there was any agreement between the parties beyond 31.12.2003 for use of the plaintiff’s showroom? OPP

d. Whether the plaintiff is entitled for recovery of a sum of Rs.1,55,000/- towards promotion scheme and star power from defendants? OPP

e. Any other relief”

9. Despite of various opportunities granted to the plaintiff, no evidence by way of affidavit was filed. Vide order dated 01.11.2011, cost of Rs.10,000/- was imposed.

10. Admittedly, there was no fresh contract between the parties. On reading of e-mail dated 30.09.2004, it appears that the defendants’ intention was to remind the plaintiff that there is no agreement for the year 2004 and also mentioned that further instruction would be taken from the authorities concerned. In para-17 of the written statement, it was also stated that TDS certificate against bill for the month of March, 2004 was issued by the defendants on 14.04.2004 but no payment has been made. I











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