SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(Online)(KER) 40207

HIGH COURT OF KERALA
C.K. SURENDRAN – Appellant
Versus
KUNHIMOOSA – Respondent
C.R.P.No.68/2023 | C.R.P.No.134/2023 | O.S.No.61/2021 | I.A.No.1/2023



Clear and unambiguous admissions are essential for passing a decree under Order XII Rule 6; the jurisdiction of commercial courts does not inherently oust civil court jurisdiction in cases of commercial disputes.

Headnote:(A) Code of Civil Procedure, 1908 - Order XII Rule 6 - Recovery of license fee based on agreement - Application for decree on admission was rejected, questioning clarity of admission in written statement - Jurisdiction of civil court and commercial courts discussed with reference to earlier cases and legislative intent. (Paras 2, 3, 6, 9, 12)

(B) Admission - Clear and unambiguous admission required under Order XII Rule 6 for passing a decree. The admission must be sufficient to determine the rights of parties without further evidence. Incomplete admissions do not enable decree passing, particularly when maintainability is challenged. (Paras 2, 4)

Facts of the case:
Plaintiff sought recovery of arrears of license fee amounting to over Rs.3.76 crores. The defendant admitted partial payment but disputed subsequent payments, questioning the maintainability of the suit due to previous litigation.

Findings of Court:
The rejection of the application was deemed improper, necessitating a remand to issue conditional attachment and transferring the matter to the commercial court.

Issues: Clarity of admission in written statement, maintainability of suit due to prior causes of action, jurisdiction of civil vs. commercial courts.

Ratio Decidendi: Court identified that admissions must be clear for decree under Rule 6; previous lawsuits affect maintainability and should not bypass necessary adjudication. Legislative intent clarified that commercial courts do not oust the jurisdiction of civil courts.

Result: C.R.P.No.134/2023 partially allowed; C.R.P.No.68/2023 dismissed.

Table of Content
1. facts of the case surrounding the recovery of license fee. (Para 2)
2. legal standards and interpretation of admission under order xii rule 6 c.p.c. (Para 3 , 4)
3. possibility of passing decree on admission. (Para 5)
4. jurisdictional considerations regarding commercial disputes and courts. (Para 6 , 7 , 8)
5. interpretation of commercial dispute and application of statutory definitions. (Para 9 , 10 , 11 , 12)
6. final orders and directions for the trial court. (Para 13)

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 from Karan 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 questio

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top