IN THE HIGH COURT OF DELHI AT NEW DELHI
Neena Bansal Krishna, J.
Sandeep Singh – Appellant
Versus
Hindustan Spirits Ltd. , Through Its Chairman/managing Director/ceo – Respondent
CS(COMM.) 444 of 2021
Decided On : 07-02-2023
Judgment on Admission - Application under Order XII Rule 6 of CPC, 1908 - [JUDGMENT ON ADMISSION] - [CIVIL PROCEDURE] - [CPC, 1908] - The court dismissed the application for judgment on admission as there were no unambiguous and unequivocal admissions made by the defendant regarding the outstanding liability either in the pleadings or in any of the documents/balance sheets or ledger accounts.
Fact of the Case:
The plaintiff sought a Decree of Rs. 6,97,00,000/- along with interest @ 18% per annum, claiming it was a loan given to the defendant Company. The defendant disputed the nature of the amounts and filed a counter-claim seeking recovery of about Rs. 11,16,93,848/- as plaintiff's proportionate contribution of 50% towards losses, deferred revenue expenditure, outstanding bank loans as on 31st March, 2018, and a set-off/adjustment of Rs. 2,10,50,000/- along with interest @ 18% per annum given to the plaintiff by HA Enterprises.
Finding of the Court:
The court dismissed the application for judgment on admission as there were no unambiguous and unequivocal admissions made by the defendant regarding the outstanding liability either in the pleadings or in any of the documents/balance sheets or ledger accounts.
Issues: The issues revolved around the nature of the amounts claimed by the plaintiff, the defendant's counter-claim seeking recovery, and the set-off/adjustment of amounts given to the plaintiff by HA Enterprises.
Ratio Decidendi: The court emphasized that for a judgment to be based on admissions, the admissions have to be unequivocal and unambiguous, leading to no other conclusion but to a decision in favor of the plaintiff. The court also highlighted the principles of equitable set-off and the need for mutual debts and credits to arise out of the same transaction or be connected in nature and circumstances.
Final Decision: The court dismissed the application for judgment on admission and listed the matter before the Roster Bench for framing of issues.
JUDGMENT
Neena Bansal Krishna, J.
I.A. 3017/2022 (U/O XII Rule 6 r/w Section 151 of CPC, 1908)
1. The present application under Order XII Rule 6 read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as "CPC, 1908") has been filed on behalf of the plaintiff seeking a Decree in the sum of Rs. 6,97,00,000/- along with interest @ 18% per annum pre-litigation, pendente lite and future interest @ 18% per annum.
2. It is submitted in the application that the plaintiff had given advances to the defendant Company as loan, by way of bank transfer/RTGS/NEFT. An amount of Rs. 18,38,27,000/- was given during the period from 03rd January, 2014 to 01st August, 2018 to the defendant Company. After giving an adjustment of the repaid amount, an amount of Rs. 7,06,65,844/- along with interest@ 18% per annum amounting to Rs. 10,66,09,541/- till 30th September, 2019 is payable.
3. It is asserted by the plaintiff that the defendant in its Written Statement has made clear, unambiguous, unconditional acknowledgement of the liability. It has disputed only an amount of Rs.1,61,00,000/-, even though it had been paid by the defendant by way of bank transfers/RTGS/NEFT/bank cheques. The defendant-Company has made unequivocal admissions in paragraph 17 and 21 in respect of its liability to pay the sum of Rs. 6,97,00,000/-out of the claimed amount. Hence, a prayer has been made that a Decree in respect of the admitted amount of Rs. 6,97,00,000/- along with the interest @ 18% per annum may be made.
4. The defendant in its response has asserted that there is no admission of any kind made by the defendant which would entitle the plaintiff to a Decree on admissions; rather the defendant has filed a counter-claim claiming various amounts and has also sought adjustment/set-off.
5. It is denied that the amounts which are claimed by the plaintiff were advances as loan. It is asserted that infact the amounts were actually investments and the plaintiff is not entitled to the said amounts. It is submitted that the detailed defence is mentioned in the Written Statement which may be read as part and parcel of this application, which may be dismissed.
6. Submissions heard.
7. This application for judgement under Order XII Rule 6 of CPC, 1908 has been filed by the plaintiff seeking decree of Rs.6,97,00,000/- in the light of unambiguous and categorical admissions made by the defendant. Before embarking on the merits of the case, it would be pertinent to first highlight under what circumstances a decree can be made under Order XII Rule 6 of CPC.
8. Hon'ble Supreme Court in Himani Alloys Ltd. Vs. Tata Steel Ltd., (2011) 7 SCR 60 had observed that Order XII Rule 6 CPC is an enabling provision and the court has to exercise its judicial discretion after examination of facts and circumstances, keeping in mind that a judgment on admission is a judgment without trial which permanently denies any remedy to the defendant, by way of an appeal on merits. Therefore, unless the admission is clear, unambiguous and unconditional, the discretion should not be exercised to deny the valuable right of a defendant to contest. It is only when the admission is clear that it may be acted upon. Similar observations were made by the Supreme Court in the case of M/s Jeevan Diesels & Electrical Ltd. (2010) 6 SCC 601.
9. The Division Bench of Delhi High Court in Vijay Myne vs. Satya Bhushan Kaura, 142 (2007) DLT 483 (DB) explained the scope of Order XII Rule 6 of CPC as follows:
"12. ...Purpose would be served by summarizing the legal position which is that the purpose and objective in enacting the provision like Order 12 Rule 6, CPC is to enable the Court to pronounce the judgment on admission when the admissions are sufficient to entitle the plaintiff to get the decree, inasmuch as such a provision is enacted to render speedy judgments and save the parties from going through the rigmarole of a protracted trial. The admissions can be in the pleadings or otherwise
The main legal point established in the judgment is that for a judgment to be based on admissions, the admissions have to be unequivocal and unambiguous, leading to no other conclusion but to a decis....
The main legal point established is that for a judgment to be based on admissions, the admissions must be unequivocal and unambiguous, and the court can ignore vague and unsubstantiated defenses.
A party seeking judgment on admission must demonstrate clear and unequivocal admissions, and failure to establish a prima facie case precludes injunction relief.
Equitable set-off in execution denied for unrelated facility dues; requires same transaction or inequitable circumstances.
Letters from defendants acknowledged liability under Section 19 of the Limitation Act, allowing the suit to proceed despite concerns of limitation.
A party seeking judgment on admission must demonstrate unequivocal admissions; failure to establish a prima facie case negates the possibility of granting an injunction.
A judgment upon admission requires clear and unequivocal acknowledgment of debt, which was not established in this case.
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