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2023 Supreme(Del) 6060

IN THE HIGH COURT OF DELHI AT NEW DELHI
Chandra Dhari Singh, J.
Satish Swaroop - Appellant
Versus
Nipon Dholua - Respondent
C.R.P. 31 of 2022
Decided On : 12-12-2023

Advocates appeared:
Mr. Akshay Sapre, Advocate and Abhijeet Swaroop, Advocate, for the Petitioners.
Ms. Rituparna Hazarika, Advocate, for the Respondent.

For a decree on admissions under Order XII Rule 6 CPC, the admissions must be clear, unambiguous, and unconditional; evasive denials do not qualify.

Headnote:(A) Code of Civil Procedure, 1908 - Section 115 - Order XII Rule 6 - Revision petition against dismissal of application for decree on admission - Petitioners alleged respondent's admissions entitled them to relief - Respondent denied liability and counterclaimed - Court found no unequivocal admissions warranting decree - Application dismissed. (Paras 1, 51, 82)

(B) Admissions - Requirement for judgment on admissions - Admissions must be clear, unambiguous, and unconditional to warrant a decree - Evasive denials do not satisfy this criterion. (Paras 60, 82)

Facts of the case:
Petitioners engaged respondent as a consultant, paid Rs. 50,00,000, but claimed non-performance led to a suit for recovery of Rs. 47,50,000. Respondent admitted partial liability but counterclaimed Rs. 68,00,000, alleging the agreement was never executed. (Paras 3, 7, 28)

Findings of Court:
No clear admissions found in respondent's statements; the trial court's dismissal of the petitioners' application was justified. (Paras 82, 89)

Issues: Whether the respondent made admissions entitling petitioners to a decree under Order XII Rule 6 of CPC. (Paras 55, 82)

Ratio Decidendi: The court emphasized that only clear and unequivocal admissions can lead to a judgment on admissions; evasive denials do not suffice. (Paras 60, 82)

Result: Petition dismissed.

JUDGMENT

Chandra Dhari Singh, J.

1. The instant petition under Section 115 of the Code of Civil Procedure,1908 (hereinafter "CPC"), has been filed on behalf of the petitioners seeking the following reliefs:

    "a. Set aside the Order dated 16th October 2021 passed by the Learned Additional District Judge, Shri Pawan Singh Rajawat rejecting the Petitioners' Application under Order XII Rule 6 of CPC in CS No. 678 of 2020.

    b. Pass an appropriate judgment on admission under Order XII Rule 6 CPC in view of the admissions contained in the Reply to Legal Notice on behalf of the Respondent;

    c. Pass any other or further order/reliefs which this Hon'ble Court may deem fit and proper in light of justice, equity and good conscience."

FACTUAL MATRIX

2. The petitioners, Mr. Satish Swaroop and Ms. Richa Srivastava, are directors of Chaturbahave Electronic Business Solutions Private Limited. The said company is inter alia engaged in the business of providing IT services. The respondent, Mr. Nipon Dholua, is the promoter and director of Nipon BDK Communication Private Limited.

3. The petitioners engaged the services of the respondent as a business consultant to aid and assist in development of their IT Business for a total period of two years, i.e., from 1st October 2019 to 31st October 2021 (hereinafter "proposed project").

4. In terms of the understanding and as a necessary pre-condition to enter into a formal agreement for the proposed project, the petitioners released an advance sum of Rs. 50,00,000 /- (hereinafter "advance payment") on 20th September 2019. Subsequently, the terms and conditions were reduced to writing in the form of a draft agreement.

5. It is stated by the petitioners that the respondent, in complete breach of its obligations, failed to develop any business for the petitioners. Therefore, on account of non-performance by the respondent, the above said draft agreement was not signed and was treated as null and void.

6. In view of the above, the petitioners issued a legal notice dated 11th February 2020, calling upon the respondent to refund the advance payment. In response to the same, the respondent sent a reply dated 14th February 2020. The petitioners have alleged before the learned Trial Court that the respondent has admitted to certain position of facts and the same amounts to admission in terms of Order XII Rule 6 of the CPC.

7. Since, the respondent failed to refund the entire advance payment, the petitioners instituted a Civil Suit bearing CS no. 678/2020, seeking recovery of Rs. 47,50,000/-, before the learned ADJ-08, West, Tis Hazari Court, Delhi.

8. In the said suit, the petitioners filed an application under Order XII Rule 6 of the CPC, seeking decree against the respondent on the basis of categorical, unequivocal and unambiguous admissions made by the respondent in its reply to the legal notice dated 14th February 2020, and in his written statement filed on 2nd February 2021.

9. The above said application filed by the petitioners was dismissed by the learned Trial Court vide the impugned order dated 16th October 2021. Aggrieved by the same, the petitioners have approached this Court seeking revision of the impugned order.

10. The petitioners have filed the instant petition, wherein, he has raised the grounds in paragraph no. `A to T' stating that the impugned order passed by the learned Trial Court is erroneous and has been passed against the settled principles of law. The written submissions have been filed by the petitioners on 10th November 2023.

SUBMISSIONS

(On behalf of the petitioner)

11. Learned counsel appearing on behalf of the petitioners submitted that the learned Trial Court erred in passing the impugned order since it failed to take into consideration the entirety of the facts and circumstances of the instant dispute.

12. It is submitted that the respondent had made certain admissions in paragraphs `1 to 11' in his reply to the legal notice issued on behalf of the petitioners and also in paragraphs `3, 5, 6, 13, 18,

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