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2018 Supreme(Online)(Cal) 11

IN THE HIGH COURT AT CALCUTTA
, J
Prabir Kumar Pal and Another v. Dilip Choudhury and Others
Commercial Suit|C.S. 23 of 2015|G.A. 202 of 2016



Advocates:
For the Appellants/Petitioners: [not listed]
For the Respondents: [not listed]

A judgment on admission requires clear admissions by authorized parties; ambiguity in liability can't support a summary judgment.

Headnote:(A) Civil Procedure Code, 1908 - Order XII Rule 6 - Commercial Suit - Judgment on Admissions - The learned Single Judge passed a decree on admission for Rs.1,68,00,000/- with interest against defendants finding a contractual liability. Clear authority of admission required, defendant 2's authorization in dispute. Judgment set aside as inadequate for summary judgment on admission without proper trial. (Paras 7, 20)

(B) Suit Against Trust - All trustees should be parties, substantial representation debated, but not conclusively determined in impugned judgment. (Paras 17-18)

Facts of the case:
Respondent no. 1 claimed Rs.3,32,00,000/- against defendants for breach of contract in a commercial suit. Defendants failed to discharge liabilities post payment by plaintiff.

Findings of Court:
Decree on admission granted for lesser amount, with interest; authorization of admissions was unclear, leading to improper judgment.

Issues: Whether the admissions made were clear enough for a summary judgment; whether all trusts' representatives were included as parties.

Ratio Decidendi: A judgment on admission necessitates clear and unequivocal admissions, made by competent persons; failure to recognize proper authorization leads to judgment being overturned.

Result: Impugned judgment set aside and suit to be tried on merits.

Table of Content
1. establishment of claims based on contractual agreements and admissions. (Para 1 , 2 , 3 , 4)
2. judgment on admissions should have clarity on liability and authority. (Para 5 , 6 , 8)
3. judgment on admission necessitates express and unconditional admissions. (Para 7 , 9 , 10 , 12)
4. all trustees must be part of litigation involving trust liabilities. (Para 14 , 16 , 17 , 18)
5. impugned judgment overturned for lack of basis on summary grounds. (Para 19 , 20)

1. A judgment dated 26th July, 2016 on admission and decree drawn up thereon, in respect of a Commercial Suit, being C.S. 23 of 2015, passed by a learned Single Judge of this High Court in G.A. 202 of 2016 has been challenged in all these three appeals.

2. Respondent no. 1 in each of these three appeals is the plaintiff in C.S. 23 of 2015. In that suit, respondent no.1 / plaintiff filed G.A. no. 202 of 2016 for passing of a decree on admission in his favour.

3. As per the cause title of the plaint of C.S. 23 of 2015, the defendant no. 1 is a company, defendant nos. 2 to 6 are private individuals, defendant no. 7 is a Trust, defendant no. 8 is a company and defendant no. 9 is a registered society. Among the said defendants, defendant no. 2 is the appellant in APDT 29 of 2016, defendant nos. 3 and 4 are appellant nos. 1 and 2 respectively in APDT 24 of 2016 and defendant no. 5 is the appellant in APDT 38 of 2016. Respondent no.1 / plaintiff prayed for a decree for Rs.4,76,35,178/- against defendants nos.1 to 8 and other reliefs. Respondent no.1 / plaintiff, however, did not pray for any relief against defendant no. 9.

4. According to averments made in the plaint, defendant no. 2 is a director of defendant nos. 1 and 8. Defendant nos. 5 and 6 are also directors of defendant no. 1. Defendant nos. 3 and 4 are parents of defendant no. 2. Defendant no. 1 company was under the control of defendant nos. 2 to 6. Defendant no. 9 used to run two medical institutions. Said institutions were facing financial and other difficulties. Defendant no. 2 representing himself and defendant nos. 1, 3, 4, 5, 6 and 8 approached the respondent no.1 / plaintiff and apprised the said respondent no.1 / plaintiff about the problems faced by the two institutions. In order to overcome such problems, a memorandum of understanding was entered into by and between defendant nos. 8 and 9 on 21st August, 2012. The defendant no. 8 agreed to assume liability for some outstanding loan of defendant no. 9 and agreed to pay Rs.40 lac in instalments by 15th October, 2012. To fulfil that commitment, defendant no. 7 / Trust was created on 6th September, 2012. In that Trust, the defendant nos. 2, 4, 6, the respondent no.1 / plaintiff and few others were appointed as trustees. Then, on representation by defendant no. 2, the respondent no.1 / plaintiff agreed to pay Rs.12.50 crores to defendant nos. 1 to 8 by 30th October, 2012 in consideration of 25% share in the management of defendant no. 9 in respect of the two institutions. Respondent no.1 / plaintiff paid Rs.2,01,00,000/- in cash on 25.08.2012 to defendant no. 1 through defendant no. 2 against receipt and respondent no.1 / plaintiff caused transfer of fund of Rs.1,31,00,000/- to the defendant no. 1 through the bankers on 28.08.2012. The respondent no.1 / plaintiff, accordingly, paid Rs.3,32,00,000/- for transferring to defendant no. 9 by defendant nos. 1 to 8 but they neglected to discharge their liability for which the defendant no. 9 terminated the agreement. Consequently, the respondent no.1 / plaintiff did not make further contribution in terms of agreement for his payment of Rs.12.50 crore and could not acquire 25% share in the management of two institutions. Fixing liability on defendant nos. 1 to 8 for breach of contract, the respondent no.1 / plaintiff filed the suit for recovery of Rs.3,32,00,000/- with damages as they failed and neglected to refund respondent no.1 / plaintiff's claimed amount of Rs,3,32,00,000/-. The plaint was verified on 28.



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