Case Note & Summary
The plaintiff, a partnership firm, filed a suit for recovery of Rs. 1,07,88,000/- with interest against the defendant, a government-owned company, for work done under a construction contract. The plaintiff's bid was accepted on 6th April 1999, and a work order was issued on 28th April 1999. The plaintiff completed the work, and the final bill was prepared. The defendant admitted liability for the amount in the final bill but disputed certain deductions. The plaintiff filed a notice of motion under Order XII Rule 6 CPC seeking a decree on admission. The court analyzed the written statement and correspondence and found that the defendant had unequivocally admitted the plaintiff's entitlement to the amount in the final bill, subject to deductions for certain items. The court held that the admission was clear and unambiguous, and the plaintiff was entitled to a decree for the admitted amount. The court also awarded interest at 9% per annum from the date of the suit till realization. The notice of motion was allowed, and a decree was passed in favor of the plaintiff.
Headnote
A) Civil Procedure - Decree on Admission - Order XII Rule 6 CPC - Unequivocal Admission - The court examined whether the defendant's statements in the written statement and letters constituted an unequivocal admission of liability for the amount claimed. Held that the defendant's admission that the plaintiff was entitled to payment of the amount mentioned in the final bill, subject to certain deductions, amounted to a clear admission, and the plaintiff was entitled to a decree for that amount. (Paras 1-30) B) Contract Law - Construction Contract - Final Bill - Interest - The court considered the claim for interest on delayed payment. Held that in the absence of a contractual rate, the plaintiff is entitled to interest at the rate of 9% per annum from the date of the suit till realization, as per Section 34 CPC. (Paras 31-35)
Issue of Consideration
Whether the plaintiff is entitled to a decree on admission under Order XII Rule 6 CPC based on the defendant's admissions in the written statement and correspondence regarding the amount due under the contract.
Final Decision
Notice of Motion No. 1687 of 2016 is allowed. A decree is passed in favor of the plaintiff for the amount admitted by the defendant with interest at 9% per annum from the date of the suit till realization. The suit is decreed accordingly.
Law Points
- Order XII Rule 6 CPC
- decree on admission
- unequivocal admission
- construction contract
- work order
- final bill
- interest
- pendente lite interest
