Case Note & Summary
The plaintiff, SRL Limited, filed a suit against Techtrek India Limited for recovery of Rs.1,58,54,200/- being the balance of security deposits paid under leave and license agreements. The plaintiff had deposited interest-free security deposits aggregating to Rs.1,78,54,200/- with the defendant. After returning possession of the licensed premises, the defendant agreed to refund the deposits according to a payment schedule dated 6 April 2010. The defendant refunded only Rs.20,00,000/- and failed to pay the balance. Cheques issued by the defendant were dishonoured. The plaintiff filed a Notice of Motion seeking a decree on admission under Order XII Rule 6 of the Code of Civil Procedure, 1908, relying on several communications from the defendant: a letter dated 30 August 2009 admitting receipt of Rs.1,78,54,200/- as security deposit; a confirmation dated 23 December 2009 of the outstanding balance; schedules of accounts for the years ending 31 March 2009 and 2010 showing the deposit as a current liability; and a letter dated 6 April 2010 confirming the deposit and providing a payment schedule with post-dated cheques. The defendant opposed the motion, arguing that the admissions were not clear and that the suit involved disputed facts. The court held that the communications constituted clear and unequivocal admissions of liability. The court noted that the defendant had not disputed the receipt of the security deposits or the balance due. The payment schedule and issuance of cheques further confirmed the liability. The court rejected the defendant's argument that the admissions were not in the pleadings, stating that Order XII Rule 6 allows for admissions outside pleadings. The court also rejected the contention that the suit was not maintainable due to the defendant's financial difficulties. Accordingly, the court allowed the Notice of Motion and passed a decree in favour of the plaintiff for Rs.1,58,54,200/- with interest at 9% per annum from the date of the suit until payment.
Headnote
A) Civil Procedure - Decree on Admission - Order XII Rule 6 CPC - Admissions outside pleadings - The court considered whether letters and financial statements of the defendant constituted clear and unequivocal admissions of liability for refund of security deposits - Held that the communications, including letters confirming receipt of security deposits and a payment schedule, amounted to admissions entitling the plaintiff to a decree on admission (Paras 1-9).
Issue of Consideration
Whether the plaintiff is entitled to a decree on admission under Order XII Rule 6 of the Code of Civil Procedure, 1908 based on admissions made by the defendant in communications outside the pleadings.
Final Decision
Notice of Motion allowed. Decree passed in favour of the plaintiff for Rs.1,58,54,200/- with interest at 9% per annum from the date of the suit until payment.
Law Points
- Decree on admission
- Order XII Rule 6 CPC
- Admission outside pleadings
- Security deposit refund
- Leave and license agreement
