Wednesday, June 8, 2022

JUDGMENT ON ADMISSIONS: ORDER 12 RULE-6 OF CPC

 



Judgment ON ADMISSIONS: Order 12 RULE-6 OF CPC

The civil litigation, it is often felt, is a tardy and inordinately long process. However, close scrutiny of the provisions of Code of Civil Procedure would suggest that it is not so, provided, the provisions contained therein are adequately utilized in apt cases and judgments are sought in pre-trial stage or in the very initial stage itself. In fact, the courts are empowered to take a suo motu view on the plaint and decide the lis between the parties without going into process of evidence, if ex facie it appears that the judgment could be passed on the basis of admissions. The provisions and principles of judgment on the basis of admissions are contained in order XII Rule 6 of Code of Civil Procedure. The averments in the plaint and written statement shall only have to be gone through for this purpose, apart from documents filed along with the pleadings. It is also not necessary that express admissions by the defendant or the plaintiff shall be necessary. The admission can be implied or constructive. The admissions may come out of pleadings or documents either expressly or by necessary implication. Even the bald and evasive denial shall be construed as admission. Therefore, it is not as if the express admission shall be a sine qua non of invoking the aforesaid principle. The judgments and precedents have spelt out the fait accompli. It is now clear that bald and evasive denial by the opposing parties shall not relegate parties to trial and only if substantive defence stares at the record, the process of trial shall not be warranted.



PRINCIPLES

A.  The principles/provisions of Order XII Rule 6 of the Code of Civil Procedure are reproduced hereunder for ready reference:

ORDER XII­ Rule 6. Judgment on admissions­

(1)    Where admissions of fact have been made either in the pleading or otherwise, whether orally or in writing, the Court may at any stage of the suit, either on the application of any party or of its own motion and without waiting for the determination of any other question between the parties, make such order or give such judgment as it may think fit, having regard to such admissions.

(2)    Whenever a judgment is pronounced under sub­ rule (1), a decree shall be drawn up in accordance with the judgment and the decree shall bear the date on which the judgment was pronounced."

Order VIII Rules 3, 4 and 5 of the Code of Civil Procedure relates to the denials to made by the defendant to the averments made by the plaintiff. The principles of Order VIII Rules 3, 4 and 5 are reproduced hereunder:­

B.  ORDER VIII ­WRITTEN STATEMENT, SET­OFF AND COUNTER­ CLAIM.

Rule 3 : “Denial to be Specific­ It shall not be sufficient for a defendant in his written statement to deny generally the grounds alleged by the plaintiff, but the defendant must deal specifically with each allegation of fact of which he does not admit the truth, except damages”.

Rule 4:  Evasive Denial­: Where a defendant denies an allegation of fact in the plaint, he must not do so evasively, but answer the point of substance. Thus, if it is alleged that he received a certain sum of money, it shall not be sufficient to deny that he received that particular amount, but he must deny that he received that sum or any part thereof, or else set out how much he received. And if an allegation is made with diverse circumstances, it shall not be sufficient to deny it along with those circumstances”.

Specific Denial­

Rule 5.  (1) Every allegation of fact in the plaint, if not denied specifically or by necessary implication, or stated to be not admitted in the pleading of the defendant, shall be taken to be admitted except as against a person under disability:

Provided that the Court may in it discretion require any fact so admitted to be proved otherwise than by such admission."



LAW/Judicial Precedents

SUPREME COURT

The hon’ble Supreme Court in Uttam Singh Duggal & Co. Ltd Vs Union Bank of India, AIR 2000 SC 2740, has held that a litigant should not be made to wait for a decree and a decree can expeditiously be passed on the admissions of the defendant. The relevant observations of the Supreme Court are reproduced here as under:

". As to the object of the Order 12 Rule 6, we need not say anything more than what the Legislature itself has said when the said provision came to be amended. In the objects and reasons set out while amending the said rule, it is stated that where a claim is admitted, the Court has jurisdiction to enter a judgment for the plaintiff and to pass a decree on admitted claim. The object of the rule is to enable the party to obtain a speedy judgment at least to the extent of the relief to which according to the admission of the defendant, the plaintiff is entitled. We should not unduly narrow down the meaning of this rule as the object is to enable a party to obtain speedy judgment. Where other party has made a plain admission entitling the former to succeed, it should apply and also wherever there is a clear admission of facts in the face of which, it is impossible for the party making such admission to succeed."

In M/s Gian Chand Brothers Vs Rattan Lal, (2013) 2 SCC 606, the Supreme Court held that it shall not be sufficient for a defendant to deny generally the averments by the plaintiff, but he must be specific with each allegation of fact. It was further held that where there is evasive denial, the defendant cannot be permitted to lead evidence, when nothing is stated in the pleadings.

The hon’ble Supreme Court in  Badat & Co. v. East India Trading Co. AIR 1964 SC 538 has while referring to Rules 3, 4 and 5 of Order 8 of the Code has observed :­

"These three rules form an integrated code dealing with the manner in which allegations of fact in the plaint should be traversed and the legal consequences flowing from its non­ compliance. The written ­statement must deal specifically with each allegation of fact in the plaint and when a defendant denies any such fact, he must not do so evasively, but answer the point of substance. If his denial of fact is not specific but Civil Suit No. 1259/2018 7 of 18 evasive, the said fact shall be taken to be admitted. In such an event, the admission itself being proof, no other proof is necessary. The first paragraph of R. 5 is a re­production of O. XIX, R. 13 of the English rules made under the Judicature Acts. But in mofussil Courts in India, where pleadings were not precisely drawn, it was found in practice that if they were strictly construed in terms of the said provisions, grave injustice would be done to parties with genuine claims. To do justice between those parties, for which Courts are intended, the rigor of R. 5 has been modified by the introduction of the proviso thereto. Under that proviso the Court may, in its discretion, require any fact so admitted to be proved otherwise than by such admission. In the matter of mofussil pleadings, Court, presumably relying upon the said proviso, tolerated more laxity in the pleadings in the interest of justice. But on the Original side of the Bombay High Court, we are told, the pleadings are drafted by trained lawyers bestowing serious thought and with precision. In construing such pleadings the proviso can be invoked only in exceptional circumstances to prevent obvious injustice to a party or to relieve him from the results of an accidental slip or omission, but not to help a party who designedly made vague denials and thereafter sought to rely upon them for non ­suiting the plaintiff. The discretion under the proviso must be exercised by a Court having regard to the justice of a cause with particular reference to the nature of the parties, the standard of drafting obtaining in a locality, and the traditions and conventions of a Court wherein such pleadings are filed."

In the case of Roop Kumar Vs Mohan Thedani, ( 2003) 6 SCC 595 wherein the scope and meaning of the Evidence Act has been discussed in great details, it was held as follows:

"13. Section 91 relates to evidence of terms of contract, grants and other disposition of properties reduced to from of document. This section merely forbids proving the contents of a writing otherwise than by writing itself; it is covered by the ordinary rule of law of evidence, applicable not merely to solemn writings of the sort named but to others known some times as the "best evidence rule". It is is in really declaring a doctrine of the substantive law, namely, in the case of a written contract, that of all proceedings and contemporaneous oral expressions of the thing are merged in the writing or displaced by it”.



                          DELHI HIGH COURT

In ITDC Ltd. v. M/s. Chander Pal Sood and Sons, 84 (2000) DLT 337 DB, the Hon'ble Delhi High Court of held as under:­

"17. Order 12 Rule 6 of Code gives a very wide discretion to the Court. Under this rule the Court may at any stage of the suit either on the application of any party or of its own motion and without determination of any other question between the parties can make such order giving such judgment as it may think fit on the basis of admission of a fact made in the pleadings or otherwise whether orally or in writing...."

It may be noted that the principles of Rule 6 clearly spelt out that judgment on the basis of admissions of fact mad in the pleading or otherwise could be passed. This clearly shall imply that admissions through documents and by necessary implication shall also follow judgment on admission and bare denial in pleading shall be meaningless.

In Allora Electric & Cable Co. Vs M/s Shiv Charan 72 (1998) DLT 761, Hon'ble High Court held that a party is expected to expressly deny the fact which is within its knowledge and a general denial is not a specific denial by "necessary implication". The relevant portion of the judgment is reproduced hereunder:

"11. The object of this provision is to narrow the issues to be tried in the case and to enable either party to know what the real point is to be discussed and decided. The word "specifically" qualifies not only the word "deny" but also the words "stated to be not admitted" and therefore a refusal to admit must also be specifically stated. A defendant can admit or deny the several allegations made in the plaint and if he decides to deny any such allegations, he must do so clearly and explicitly. A vague or evasive reply by the defendant cannot be considered to be a denial of fact alleged by the plaintiff. A party is expected to expressly deny the fact which is within its knowledge and a general denial is not a specific denial by "necessary implication". In other words, the denial should be definite and unambiguous.

The Delhi High Court in  Universal Finance Traders Ltd Vs Lunar Diamond Ltd & Ors, 193 (2012) DLT 613, has held that if the defence taken by the defendant is devoid of any merit or of a kind which is not recognized by law, a decree on admission can be passed.

Further, in the judgment of Ved Prakash & Anr Vs M/s Marudhar Services Ltd & Anr 2000 (54) DRJ 654, it was held by the Delhi  High Court that the court is not powerless to review the entire defence presented in the written statement and the admission must be drawn from the totality of the circumstances. It was further held that it would be a pedantic approach to maintain that an admission can only be considered to have been made where a particular party specifically agrees to the correctness of the statement made in pleadings by an opposite party. Furthermore, the Court would not be justified to exercise the discretionary powers where no triable issues have arisen.

The Division bench of Delhi High Court in a matter reported as Vijaya Myne Vs Satya Bhushan Kaura, 142 (2007) Delhi Law Times 483 (DB), wherein it was observed :

"12. It is not necessary to burden this judgment by extracting from the aforesaid authoritative pronouncement as the learned Single Judge has accomplished this exercise with prudence and dexterity. Purpose would be served by summarizing the legal position which is that the purpose and objective in enacting the provision like Order 12 Rule 6, CPC is to enable the Court to pronounce the judgment on admission when the admissions are sufficient to entitle the plaintiff to get the decree, inasmuch as such a provision is enacted to render speedy judgments and save the parties from going through the rigmarole of a protracted trial. The admissions can be in the pleadings or otherwise, namely in documents, correspondence etc. These can be oral or in writing. The admissions can even be constructive admissions and need not be specific or expressive which can be inferred from the vague and evasive denial in the written statement while answering specific pleas raised by the plaintiff. The admissions can even be inferred from the facts and circumstances of the case. No doubt, for this purpose, the Court has to scrutinize the leadings in their detail and has to come to the conclusion that the admissions are unequivocal, unqualified and unambiguous. In the process, the Court is also required to ignore vague, evasive and unspecific denials as well as inconsistent pleas taken in the written statement and replies. Even a contrary stand taken while arguing the matter would be required to be ignored."

The Division bench of Delhi High Court in Parivar Seva Sansthan Vs Dr Ms Veena Kalra AIR 2000, Delhi 349 DB in which it was observed:

"Bare perusal of the above Rule shows that it confers very wide powers on the Court to pronounce judgment on admissions at any stage of the proceedings. The admission may have been made either in pleadings or otherwise. The admission may have been made orally or in writing. The Court can act on such admissions either on an application of any party or on its own motion without determining the other questions. Even constructive admission firmly made can be made the basis. Any plea raised against the contents of the documents only for delaying the trial being barred by Ss.91 and 92 of the Evidence Act or other statutory provisions can be ignored. These principles are well settled by catena of decisions in Dudh Nath Pandey Vs Suresh Chandra  AIR 1986 SC 1509, in  Surjit s. Kazakhstan ISP Ltd. Vs Charanjit Lal 1998.2.DLT 476; Laxmi kant vs MN Dastur 1998.4.AD (Delhi) 10. The use of the word any stage in the rule itself shows that the intention of legislature is to give widest possible meaning. Thus, mere framing of issues cannot by itself deter the Corut to pass judgment on admissions under O.12 R.6 CPC ".

In Laxmikant S (HUF) Vs MN Dastur Co., 1998 Rajdhani Law Reporter 171, wherein it was observed in para 11:

"11. As noticed earlier the discretion has to be exercised reasonably and not arbitrarily. If a triable issue of entitle to a judgment under this Rule and discretion will necessarily be exercised against such claimant. However, if the plea is malafide or preposterous, or vexatious and can be disposed of without going into facts or is contrary to law or settled legal position will it be justified for the Court to keep its hand off and allow the game of the defendant to have its away? In my view the answer is No."

In P.P.A. Impex Pvt. Ltd Vs. Mangal Sain Mittal, 166 (2010) Delhi Law Times 84 (DB), wherein it was observed in para 9 :

"9. It appears to us that the approach to be taken under Order XII Rule 6 is akin to what has been enunciated by the Supreme Court in Mechala Engineers & Manufacturers Vs. Basic Equipment Corporation, 13 (1977) DLT 90 (SC)=(1976) 4 SCC 687, in the context of Order 37 of the CPC with regard to granting leave to defend a summary suit. This is that if a defence amounting to moonshine has been presented, it should be summarily dismissed by not granting leave to defend and by decreeing the suit forthwith. The Courts are already groaning under the weight of bludgeoning and exponentially increasing litigation. The weight will unvaryingly increase if moonshine defence are needlessly permitted to go to trial."

The Division Bench of the Delhi  High Court had the occasion to interpret the expression 'otherwise' as used under Order 12 Rule 6 of CPC in the case of Rajiv Srivastava Vs Sanjiv Tuli and Anr reported as 119 (2005) DLT 202 (DB). It was observed as below :

"Para 10. The use of the expression 'otherwise' in the aforesaid context came to be interpreted by the Court. Considering the expression the Court had interpreted the said word by stating that it permits the Court to pass judgment on the basis of the statement made by the parties not only on the pleadings but also de hors the pleadings i.e. either in any document or even in the statement recorded in the Court. If one of the parties' statement is recorded under Order 10 Rules 1 and 2 of the Code of Civil Procedure, the same is also a statement which elucidates matter in controversy. Any admission in such statement is relevant not only for the purpose of finding out the real dispute between the parties but also to ascertain as to whether or not any dispute or controversy exists between the parties. Admission if any is made by a party in the statement recorded, would be conclusive against him and the Court can proceed to pass judgment on the basis of the admission made therein.............”

In Assocham Vs Y.N Bhargava 185(2011) Delhi Law Times 296 wherein it was observed in para 7 :

"7. When the Civil Court deals with an application under Order 12 Rule 6, CPC, the Court is entitled to see, not only the pleadings but also documents in order to find out the admitted position emerging from the record. This is because of the expression 'or otherwise' as found in Order 12 Rule 6, CPC. The issue is now sufficiently pronounced upon by the Supreme Court and the leading judgment in this regard is the decision in the case of Uttam Singh Duggal & Co. Ltd. Vs. United Bank of India, 2008 (7) SCC 120. In fact, subsequently, the Supreme Court in the case of Charanjit Lal Mehra & Ors. Vs. Kamal Saroj Mahajan & Anr., 118 ( 2005) DLT 396 (SC)=III ( 2005) SLT 131= (2005) 11 SCC 279, hs gone to the extent of stating ( in a case where the premises were in Delhi and falling outside the Delhi Rent Control Act, 1958) that even an implied admission can be looked into for the purpose of Order 12 Rule 6, CPC....."

 

CONCLUSION

The provisions under Order 12 Rule 6 of Code of Civil Procedure have evolved over the space of time and the principles of Rule 6 has been widened in due course and what constitute admission by the other side is adequately amplified. The scope of judicial discretion is also enlarged and it is successively held now that the admissions can not only be in the pleadings, but otherwise,, namely in documents, correspondence etc. These can be oral or in writing. The admissions shall not only be clear or unambiguous but principles of constructive admissions has also evolved. The admissions need not be specific or expressive, but it can also be inferred from the vague and evasive denial in the written statement while answering specific pleas raised by the plaintiff. Not only that the admissions can even be inferred from the facts and circumstances of the case. The Court is required to ignore vague, evasive and unspecific denials as well as inconsistent pleas taken in the written statement and replies. What therefore emerges from the foregoing discussion is that the fact that any opposite party to a lis shall inevitably oppose the plea of plaintiff and whether such a plenary denial shall be enough to relegate the matter to trial? The answer is a clear “No”. Since bald and evasive denial is meaningless and the admissions can be inferred not only on the basis of pleadings and documents but also on the basis of facts and circumstances. The principles under Order 12 Rule 6 of Code of Civil Procedure is not contingent on the clear admissions of opposite parties, but the court is accorded the amplitude to discern the same and even if admissions are inferred or constructive admission is plausible, the courts can pass judgment ad decree based on such inference. The very object of the principles is to truncate the need of trial when admission by the opposite side is clear or the same can be inferred. It is now no res integra that relegating a party to suffer the peril of trial when the same is avoidable in the touchstone of the above principles, in such a circumstances judicial discretion is required to be applied.

                                          ----------------------

                               Anil K Khaware

Founder & Senior Associate

Societylawandjustice.com

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