High Court of Judicature at Madras
S. JAGADEESAN & P.O. MINAKARAN
K. PADMANABHAN
VERSUS
W.S. NISHA
O.S.A.67 Of 2002
Decided On: 22-03-2002
undertaking - admission of liability - Order 12 Rule 6 C. P. C. - 6
Fact of the Case:
The respondent filed a suit for recovery of a sum of Rs. 15,00,000 principal and Rs. 13,50,000 interest. The first appellant gave an undertaking letter to pay a sum of Rs. 1,00,000 by cash and post-dated cheques for the balance. The respondent filed applications for attachment, and a decree was passed against the appellants based on the undertaking.
Finding of the Court:
The court found that the undertaking given by the first appellant constituted an admission of liability, and it was binding on both appellants. The court dismissed the appeal.
Issues: 1. Whether the undertaking given by the first appellant is an admission of his liability of the suit claim? 2. Whether the same is binding on the second appellant also?
Ratio Decidendi: The court relied on Order 12 Rule 6 C. P. C. and the judgment of Uttam Singh duggal v. United Bank of India to establish that the admission may be either in the pleading or otherwise, and it need not be in the suit itself. The court also held that the first appellant's actions were binding on the second appellant as they were jointly conducting the proceeding.
Final Decision: The appeal was dismissed.
S. JAGADEESAN, J.
1. BY consent of both the counsel the appeal is taken up for final disposal. The appellants are the defendants in c. S. No. 43 of 2000.
2. THE respondent herein filed the said suit for recovery of a sum of Rs. 15,00,000 being the principal and a sum of Rs. 13,50,000 towards interest. Pending the suit, the respondent filed Application No. 390 of 2000 for attachment of the immovable property of the appellants herein. When the Bailiff of the High court went to the appellants' place to effect the attachment of the immovable property, the first appellant gave an undertaking letter that he will pay a sum of Rs. 1,00,000 by cash and for the balance of Rs. 14,00,000 he had given the post dated cheques on different dates. The nazir produced the said letter of undertaking before the court and the first appellant also paid a sum of Rs. 1,00,000. As the post dated cheques were given, the respondent requested the Bailiff to deter the execution of the attachment warrant for a period of three weeks. The appellants filed Application Nos. 1316 and 1319 of 2001 to raise the attachment which were dismissed as infructuous on the ground that the Application No. 390 of 2000 filed by the respondent for the attachment of the property was closed in view of the undertaking given by the appellants. Since the post dated cheques handed over by the appellants were bounced, the respondent filed another application 2046 of 2001 for attachment before judgment and the same was dismissed on 13-6-2001 on the ground that the earlier application for attachment was dismissed on the basis of the undertaking given by the appellants to pay the amount. Hence the respondent filed an application 3953 of 2001 to pass a decree against the appellants herein on the basis of the undertaking given by the first appellant. By order dated 7. 12. 2001 the said application was allowed and a decree was passed against the appellants herein. Aggrieved by the same the present appeal has been filed.
3. IT is the contention of. the learned counsel for the appellants that the undertaking given by the first appellant is neither absolute nor voluntary one. To avoid any unpleasantness in the hospital, the first appellant was obliged to give the letter of undertaking and ultimately such undertaking cannot be taken as an admission. An admission as contemplated under Order 12, Rule 6, C. P. C. must be an unequivocal one on the part of the appellants. Further the first appellant alone gave an undertaking. The second appellant was not a party to such undertaking and as such there cannot be a decree against both the appellants. When the second appellant did not join in the undertaking given by the first appellant, the admission is a truncated one and on the basis of such truncated admission, the decree cannot be passed even against the first appellant. The handing over of post dated cheques will not amount to an admission. At the best, the respondent may have cause of action to prosecute the first appellant under Section 138 of the Negotiable Instruments Act and as such the order of the learned Judge cannot be sustained.
4. ON the contrary, the learned counsel for the respondent contended that the undertaking given by the first appellant is a clear admission, of the liability of the appellants. When such admission is there, it is always open to the court to pass a decree either suo motu or on the application of the respondent. Having given a letter of undertaking, it is not open to the appellants to plead that the undertaking was given to avoid the order of attachment and the same cannot be taken as a clear admission of the liability. The learned Judge considered all these aspects and ultimately granted a decree which needs no interference.
5. THE questions for consideration in these appeals are: (1) Whether the undertaking given by the first appellant is an admission of his liability of the suit claim? (2) Whether the same is binding on the second appellant also?
6.
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