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Smart Summary

Factual and Procedural Background

This application for judgment under Order 12 Rule 6 of the Civil Procedure Code arises from a suit involving ejectment, declaration, mandatory injunction, prohibitory injunction, and recovery of mesne profits. The plaintiff alleges that defendant No. 1 admitted all factual averments in the plaint, which the defendant disputes.

The plaintiff’s case is that the suit premises were leased to defendant No. 1 under a lease deed dated 24 February 1988 for three years, with tenancy expiring on 24 February 1991 and again on 24 February 1994, thereafter continuing as a month-to-month tenancy. Defendant No. 1 defaulted on rent payments from July 1995 to July 1996. Following a fire in June 1995, the Chief Fire Officer sealed the building and required installation of fire fighting equipment. The plaintiff was willing to install the equipment, but defendant No. 1 did not remove locks, and the plaintiff served an eviction notice on 2 July 1996. Defendant No. 1 failed to vacate, leading to the present suit.

Defendant No. 1 admits the initial lease but claims the tenancy was extended twice by exercising an option clause, first on 24 February 1991 and then on 24 February 1994, making the tenancy valid until 24 February 1997. Defendant states the tenancy was continuing, not monthly, and that the plaintiff accepted rent at enhanced rates during the extended period. Defendant contends the eviction notice was invalid and possession is protected under Section 53A of the Transfer of Property Act, 1882. Defendant denies plaintiff’s readiness to install fire fighting equipment and alleges wrongful deprivation of use of the premises, justifying suspension of rent.

Legal Issues Presented

  1. Whether the extension of tenancy claimed by defendant No. 1 was lawfully exercised under the option for renewal stipulated in the lease deed, thereby continuing defendant No. 1 as a contractual tenant.
  2. Whether defendant No. 1’s possession is protected under Section 53A of the Transfer of Property Act, 1882, or otherwise.
  3. Whether the suspension of rent by defendant No. 1 was lawful and whether the plaintiff is entitled to rent, mesne profits, or interest for the disputed period.

Arguments of the Parties

Plaintiff's Arguments

  • The tenancy expired by efflux of time and became month-to-month after 24 February 1994.
  • Defendant No. 1 defaulted on rent payments from July 1995 to July 1996.
  • After a fire and sealing of the building, the plaintiff was willing to install fire fighting equipment, but defendant No. 1 did not cooperate by removing locks.
  • Eviction notice dated 2 July 1996 legally terminated the tenancy.
  • Defendant No. 1’s possession is not protected as claimed.

Defendant No. 1's Arguments

  • Tenancy was extended twice by exercising option clauses, continuing until 24 February 1997.
  • The tenancy was continuing, not monthly, and plaintiff accepted rent at enhanced rates post-extension.
  • Eviction notice was invalid and ineffective.
  • Possession is protected under Section 53A of the Transfer of Property Act, 1882.
  • Plaintiff was not willing to install fire fighting equipment and deprived defendant of use, justifying suspension of rent.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court observed that Rule 6 of Order 12, Civil Procedure Code, though broadly worded, applies only when admissions by the defendant are clear, unambiguous, and unequivocal. It is not meant for cases involving serious questions of fact or law, as in this case.

The court identified key factual disputes: whether the option for extension was mutually exercised and whether the plaintiff was willing to install fire fighting equipment or was obstructed by defendant No. 1. These disputes require evidence and cannot be resolved on the basis of alleged admissions alone.

Accordingly, the court held that a judgment on admission under Order 12 Rule 6 is discretionary and not a matter of right. Given the factual and legal questions involved, the court exercised its discretion to refuse the application for judgment under this rule.

The court did not find it necessary to consider the precedents cited by the plaintiff’s counsel on the principles governing discretion under Order 12 Rule 6 CPC.

Holding and Implications

The application for judgment under Order 12 Rule 6 CPC is dismissed.

This decision means that the suit will proceed to be decided on merits after evidence is taken, as the factual disputes cannot be resolved on admissions alone. No new precedent has been established; the ruling affirms the discretionary nature of summary judgments under Order 12 Rule 6 when serious factual issues exist.

    Baljit Kaljr v. United Insurance Company Ltd.

    (1) This application for judgment under Order 12 Rule 6, Civil Procedure Code has been filed in suit for ejectment, declaration, mandatory injunction, prohibitory injunction and recovery of mesne profits. The applicant claims that defendant No. I has admitted all factual averments in the plaint, which is disputed by the said defendant.

    (2) The case of the plaintiff is that the suit premises were demised to defendant No. I under the lease deed dated 24 February, 1988 for a period of three years; the tenancy expired on 24 February, 1991 by efflux of time and again on 24 February, 1994, whereafter it became a tenancy from month to month; the last agreed rental was Rs. 43,063.00 p.m.: the said defendant defaulted in paying rent from July, 1995 till fuly, 1996; there was a fire in the building in another portion in June, 1995, resultant whereto defendant No. 2, the Chief Fire Officer sealed the building and required installation of fire fighting- equipment; the plaintiff was willing to do so; but defendant No. 1 did not remove the locks and that she was not interested in having defendant No. 1 as her tenant; served a notice of eviction on 2 July, 1996 whereby the monthly tenancy of defendant No. 1 was terminated and thereafter the said defendant having failed to vacate the premises, she filed the present suit.

    (3) Defendant No. 1 admits letting out of the premises for three years but with an option clause, in exercise of which the tenancy was extended twice; first on 24 February, 1991 and then mutually on 24 February, 1994 so as to last till 24 February, 1997. It is stated that the initial rent was Rs. 32>562.00 per month, which was enhanced in terms of the option clause to Rs. 37,446 .00 p .m. after three years of initial tenancy and thereafter to Rs. 43,063.00 p.m. w.e.f. 24 February, 1994. According to the said defendant the tenancy was continuing one and not monthly; the tenancy having been mutually extended, it was for the plaintiff to have the lease deed for the extended period executed and registered, which she did not do and claims that the plaintiff continued accepting rent for the extended period at the enhanced rate of Rs. 43,063.00 p.m. and therefore, the eviction notice dated 2 July, 1996was bad and of no consequence, and the suit for ejectment is not maintainable as its possession is protected under Section 53A of the Transfer of Property Act, 1882.

    (4) The defendant has also denied that the plaintiff was ready and willing to provide the fire fighting equipment and it is alleged that she in fact was not agreeable to the installation of the fire fighting equipment and did not join the other occupants in the building, who got it installed in unison and the defendant was forced to suspend payment of rent due to wrongful act of the plaintiff in depriving the user of the premises to the defendant, who is not liable to pay rent and interest thereon for the period it was not permitted to en)oy the property. Plaintiff's notice for eviction is termed as illegal and bad in law for the reasons stated.

    (5) The dispute between the parties thus revolves round whether, (i)the extension of tenancy claimed by defendant No. 1 is in exercise of option for renewal stipulated in terms of clause (ii) of the lease deed and is lawful and, thus defendant No. I continued to be contractual tenant, (ii) is defendant No. 1s possession protected under Section 53A of the Transfer of Property Act or otherwise, and (iii) was the suspension of rent by defendantNo. 1 lawful and the plaintiff's not entitled to rent mesne profits or the interest for the said or any period, as alleged.

    (6) As is obvious from the afore noted issues the points in dispute requiring determination are legal as well as factual. The factual disputes in main relate to the questions : (a) whether the alleged option for extension of tenancy beyond 24 February, 1994 was mutually exercised, as claimed by the defendant, and (b) whether the plaintiff was really willing to,orfailed to join or pay for installation of the fire fighting equipment or it could not be done due to defendant No. l's not removing the locks, etc., as alleged by the plaintiff. The factual disputes require evidence and cannot be decided without it.

    (7) Although Rule 6 of Order 12, Civil Procedure Code is couched in wide terms but it can be acted upon only when admission(s) are clear, unambiguous and unequivocal. It is not intended to be put into operation where there are serious questions of fact or law to be determined, like in the instant case. It is well settled that a judgment on admission by the defendant under Order 12 Rule 6, Civil Procedure Code is a matter of discretion and not a matter of right and when a case involves questions which cannot be conveniently disposed of on a motion, under the rule, the Court may, in the exercise of discretion, refuse the motion.

    (8) As noticed above, in the present case, defendant No. 1 has raised certain pleas which go to the very root of the suit and have to be decided after taking evidence. A judgment cannot, therefore, be pronounced under Order 12 Rule 6 Cpc on the basis of alleged admissions.

    (9) For the view I have taking it is not necessary to deal with the judgments relied upon by learned counsel for the plaintiff, laying down die principles to be applied by the Courts while exercising discretion under Order 12, Rule 6, CPC.

    (10) In the result, the application is dismissed.

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    Comments

    Baljit Kaljr v. United Insurance Company Ltd.
    (Sep 19, 1997)