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2023 Supreme(Online)(KER) 10902

HIGH COURT OF KERALA
P.SOMARAJAN, J
C.K. SURENDRAN – Appellant
Versus
KUNHIMOOSA – Respondent
CRP 68 2023



Advocates:
B.KRISHNAN, R.PARTHASARATHY, G.SREEKUMAR (CHELUR)

A decree on admission under Order XII Rule 6 CPC requires clear admissions, cannot ignore maintainability challenges, and the jurisdiction of commercial courts does not inherently oust that of civil courts.

Headnote:

CPC - Attachment - Order XII Rule 6, Commercial Courts Act 2015 - The court highlighted that decree on admission requires clear, unambiguous admissions and cannot be granted if maintainability is challenged, and emphasized the jurisdiction of commercial courts while analyzing the admissibility of decrees under the CPC.

Fact of the Case:

The plaintiff sought a decree based on admissions in the defendant's written statement for unpaid license fees but faced dismissal of related applications by the trial court, prompting revision petitions by the plaintiff.

Finding of the Court:

The court found that the trial court failed to properly assess the admissions in the written statement and neglected to issue necessary show cause notices regarding the attachment application, leading to a remand for further proceedings.

Issues: Whether the trial court correctly applied Order XII Rule 6 CPC to grant a decree based on admissions when maintainability was in question, and the jurisdiction of commercial courts in this context.

Ratio Decidendi: The court established that a clear, unambiguous admission is necessary for a decree under Order XII Rule 6 and that maintainability challenges must be resolved before issuing decrees. Commercial court jurisdiction does not exclude civil court jurisdiction unless specifically stated.

Final Decision: The revision petitions were allowed in part, with one application remanded to the trial court and the other dismissed.

ORDER

These revision petitions are against the two orders passed by the trial court in a subsequent suit in O.S.No.61/2021 by the plaintiff. The subject of C.R.P.No.68/2023 is the order passed rejecting an application to pass a decree on admission under Order XII Rule 6 C.P.C by the trial court. C.R.P.No.134/2023 is against the order dismissing an application for attachment before judgment in that suit.

2. The application submitted by the plaintiff in I.A.No.1/2023 in O.S.No.61/2021 is for getting a decree under Order XII Rule 6 C.P.C. based on the admission in the written statement submitted by the defendant. The suit is admittedly for recovery of licence fee based on agreement for licence. The arrears of licence fee comes to Rs.3,76,98,040/- (Rupees Three Crores Seventy Six Lakhs Ninety Eight Thousand and Forty only). The pleading in paragraph 14 of the written statement admits payment of licence fee upto the month of April, 2020 as per cheque No.126495 dated 10/8/2020. Further, it is stated that the defendant did not avail the benefit of COVID 19 pandemic as alleged by the plaintiff. He did not have any pleading that the subsequent monthly licence fee was paid or tendered or adjusted otherwise. It is contended that the admission, if any incorporated in paragraph 14 of the written statement is not an unqualified admission, without which no power under Order XII Rule 6 C.P.C. can be exhausted to pass a decree on admission and took reliance fromKaran Kapoor v. Madhuri Kumar [ (2022) 10 SCC 496 ].

3. The legislative intent by the incorporation of Order XII Rule 6 C.P.C. is to avoid unnecessary trial of any suit, wastage of time and speedy disposal of litigation, when there is an admission regarding the liability to the extent of making it possible to pass a decree on such admission. The admission by way of pleading should be clear, unambiguous and must be of the nature and the extent to pass a decree wholly and completely based on such pleading without leaving any scope for any oral or documentary evidence or any clarification, for that purpose, the entire pleading in the written statement should be taken in whole and not in isolation. At the same time, it cannot be insisted invariably in all cases that there should be an unqualified admission or a declaration to that effect by way of pleading or otherwise to pass a decree on admission. The test that can be applied is to find out whether it is permissible or possible to determine conclusively the rights of parties and to adjudicate it without seeking any clarification or evidence. A mere contention that licence fee was paid upto a particular date though admits non-payment of licence fee thereafter would not by itself empower the court to pass a decree on such admission, when the maintainability of the suit was brought under challenge either on account of limitation or any other debarring provision. The jurisdiction that can be exercised in order to pass a decree on admission under Rule 6 of Order XII C.P.C. is imperative and peremptory, but does not call for an unqualified admission invariably in all cases. The admission can be either by way of pleading or by way of documentary evidence or by oral evidence. What is dealt under Order XII Rule 6 C.P.C. covers both the admission by pleading or otherwise, whether orally or in writing and it can be exercised at any stage of the suit either on the application of any of the party or on its own motion without waiting for determination of any other question between the parties. The Apex Court had laid down inKaran Singh and Another v. State of M.P. and Others ( AIR 1986 SC 1506 ) that the admission in the written statement should be taken as a whole and not in part. Further, the jurisdiction that can be exercised under Rule 6 of Order XII C.P.C. has no overriding effect over the other provisions of law including the question of res judicata, bar of limitation, bar of any other provision such as Order XXIII Rule 1 C.P.C., Order II Rule 2 C.

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