Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
Smart Summary

Structured Summary of the Opinion — Vijender Jain, J.

Factual and Procedural Background

This opinion disposes of IA No. 11509/96 (an application under Order 7 Rule 11 CPC filed by the defendant for rejection of the plaint) and IA No. 1036/97 (under Section 11 CPC filed by the plaintiff). The plaintiff also filed an application under Order 12 Rule 6 CPC based on an admission by the defendant in paragraph 1 of the written statement that the lease between the parties would expire on 9th February 1997.

The defendant filed a written statement (filed on 16th April 1991) which, in paragraph 1, unequivocally averred that the lease would expire on 9th February 1997. This admission was reiterated in court on 4th February 1997. Multiple hearings and adjournments took place: the matter was adjourned to 6th March 1997 (when IA Nos. 7063/96 and 11509/96 were heard), then to 24th March 1997 for the plaintiff's Order 12 Rule 6 application, and subsequently to dates including 21st July 1997, 17th September 1997, 30th September 1997, 3rd November 1997 and 26th November 1997. During this period the defendant sought time to explore settlement; some IAs for adjourning the suit sine die (IA Nos. 10452/97 and 10603/97) were disposed of by order dated 26th November 1997.

The plaintiff relied on both the alleged agreement and, separately, a notice under Section 106 of the Transfer of Property Act (referenced in paragraph 26 of the plaint) and asserted that a distinct cause of action (termination of tenancy pursuant to that notice) accrued in its favour.

Legal Issues Presented

  1. Whether the defendant's application under Order 7 Rule 11 CPC for rejection of the plaint is maintainable given the defendant's admission about the lease expiry.
  2. Whether the plaintiff is entitled to relief (a decree for possession) under Order 12 Rule 6 CPC based on the defendant's admission that the lease expired on 9th February 1997.
  3. Whether the suit is misconceived or premature because the alleged agreement (basis of the suit) did not exist at the time of filing.
  4. Whether disputed questions of law and fact (invoked by the defendant relying on Baljit Kaur) preclude the passing of a decree for possession.

Arguments of the Parties

Defendant's Arguments

  • The suit is misconceived and premature because no agreement, as alleged in the plaint, was entered into by the defendant with the plaintiff.
  • The relief of possession sought cannot be granted because the suit was filed on the basis of an agreement that does not exist.
  • The plaintiff did not claim possession in the suit.
  • No cause of action accrued in favour of the plaintiff at the time of filing the suit.
  • Relying on Baljit Kaur v. United Insurance Company Ltd. (1997 VI AD (Delhi) 937), the defendant submitted that where disputed questions of law and fact exist, a decree for possession should not be passed.

Plaintiff's Arguments

  • The plaintiff relied not only on the alleged agreement but also on a separate notice under Section 106 of the Transfer of Property Act (referred to in paragraph 26 of the plaint), and in paragraph 27 asserted that the cause of action included termination of tenancy pursuant to that notice.
  • The plaintiff filed an application under Order 12 Rule 6 CPC, seeking relief based on the defendant's admission (in paragraph 1 of the written statement) that the lease would expire on 9th February 1997.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Baljit Kaur v. United Insurance Company Ltd., 1997 VI AD (Delhi) 937 Principle that where facts are not admitted or different questions of fact and law arise, a decree for possession may not be passed. The Court acknowledged the proposition but distinguished it because the defendant had made an unequivocal admission in the written statement; thus Baljit Kaur did not preclude relief in these circumstances.
S.L. Associates Pvt. Ltd. v. Karnataka Handloom Development Corpn., 62 (1996) DLT 386 That a court may, in suitable cases, take notice of events occurring after institution of the suit and afford relief on the basis of altered conditions (and that a plaintiff can be entitled to eviction under Order 12 Rule 6 where the lease period has expired during pendency of the suit). The Court relied on this authority to support taking the defendant's admission and changed circumstances into account and granting relief under Order 12 Rule 6 CPC.
Sikar Chand & Others v. Mast Bari Bai & Others, AIR 1974 Madhya Pradesh 75 Illustration that a decree for eviction may be passed under relevant provisions where the extended lease term has expired and where the judgment can be based on defendant's admissions (even if de hors the pleadings). Referenced as a similar authority demonstrating that a court may base judgment on admissions made by the defendant and grant eviction when the extended term expired.
Surjit Sachdev v. Kazakhstan Investment Services Pvt. Ltd. & Ors., 1997 II AD (Delhi) 518 That after a lease has come to an end, defendants have no right to continue in possession; and that a decree on admission is permissible, with admissions (express or constructive) being sufficient. The Court relied on this Division Bench decision to confirm that an unequivocal admission regarding expiry of lease entitles a plaintiff to a decree for possession and that constructive admissions can justify a decree under Order 12 Rule 6 CPC.

Court's Reasoning and Analysis

The Court proceeded in a stepwise manner:

  1. Recognition of the legal framework: the Court acknowledged that relief under Order 12 Rule 6 CPC is discretionary and that normally, where facts are disputed, a decree for possession is not granted (as reflected in Baljit Kaur). The Court also accepted the established principle that courts may, in suitable cases, take note of events which occur after the institution of a suit and grant relief on the basis of altered circumstances (as in S.L. Associates).
  2. Emphasis on the defendant's admission: the Court gave decisive weight to the unequivocal admission in paragraph 1 of the written statement (filed on 16th April 1991) that the lease would expire on 9th February 1997, and to the defendant's oral reiteration of that position in court on 4th February 1997. The Court treated this admission as operative and determinative for the possession issue.
  3. Consideration of procedural history and conduct: the Court reviewed the delay and repeated adjournments sought by the defendant, including repeated requests for time to settle, and described the defendant's conduct as dilatory, observing that parties cannot resile from admissions freely made in pleadings or in court.
  4. Application of precedent: relying on authorities cited in the opinion (S.L. Associates, Sikar Chand, Surjit Sachdev), the Court held that it may base relief on admissions made by the defendant (including constructive admissions or statements de hors the pleadings) and that expiry of the lease during pendency can justify eviction relief under Order 12 Rule 6.
  5. Outcome of the analysis: because the defendant had unequivocally admitted the lease expiry and had not vacated the premises, the Court found no merit in the defendant's objections (including that the agreement did not exist or that the relief for possession was not claimed) and concluded that the plaintiff was entitled to a decree for possession on the basis of the defendant's admission.

Holding and Implications

Core Ruling: The plaintiff's application under Order 12 Rule 6 CPC is allowed and a decree for possession is passed in favour of the plaintiff against the defendant.

Specific orders and direct consequences for the parties:

  • The defendant is ordered to hand over possession of the property (No. H-11 Middle Circle (basement), Connaught Circus, New Delhi) to the plaintiff within four weeks.
  • At the time of handing over possession, the defendant must give notice to the other co-owner, Shri Rakesh Khanna, who may be present at the handing over.
  • Application Nos. 7065/96, 11509/96 and 1036/97 are disposed of accordingly. (IA No. 11509/96 was the defendant's application under Order 7 Rule 11 CPC for rejection of the plaint; the Court found no merit in the defendant's objections.)
  • The matter is listed for further proceedings on 2nd March 1998.

Broader implications: The Court applied existing principles (and relied on prior decisions) to hold that courts may grant relief on the basis of a party's clear admissions and on events occurring during the pendency of the suit. The opinion does not purport to lay down a new legal precedent; it applies established authorities to the facts before the Court.

    Vikas Theatres & Exhibitors v. Punjab & Sind Bank.

    Vijender Jain, J. (Oral)— This order will dispose of IA No. 11509/96, application under Order 7 Rule 11 CPC filed by the defendant for rejection of the plaint as well as IA No. 1036/97 under Section 11 CPC filed by the plaintiff. Mr. Sistani, learned counsel appearing for the defendant has contended that the suit is misconceived as well as pre-mature as no agreement as alleged in the plaint was entered into by the defendant with the plaintiff. He has further contended that the suit which has been filed on the basis of agreement does not exist, the relief of possession sought for cannot be granted by this Court. The next submission of the learned counsel for the defendant is that the plaintiff has not claimed possession in the suit. Lastly Mr. Sistani has contended that no cause of action accrued in favour of the plaintiff at the time of filing of the suit. Mr. Sistani has further contended that in view of the decision of this Court in Baljit Kaur v. United Insurance Company Ltd. 1997 VI AD (Delhi) 937, judgment for possession be not passed by this Court as there are disputed question of law and fact.

    The defendant filed the written statement and in para 1 there is an unequivocal averment made by the defendant that the lease was to expire on 9th February, 1997. Conscious of this fact, the defendant made statement before this Court on 4th February, 1997 that the lease was to expire on 9th February, 1997 and thereafter the plaintiff was entitled to the possession of the property in dispute. The matter was adjourned to 6th March, 1997. On 6th March, 1997 I.As 7063/96 and 11509/96 came up for hearing before the Court. It seems that on query, from the Court that in view of the stand of the defendant that the lease was to expire on 9th February, 1997 how can the defendant continue in possession, thereafter the defendant sought time to examine the matter as to how defendant can still continue with the poossession of the premises in dispute.

    Vide order dated 6th March, 1997 the Court on the arguments of the learned counsel for the defendant regarding issue No. 4 which was framed on 8th April, 1994, “Whether the plaintiffs are entitled to the specific performance of the agreement dated 25th July, 1986” has ordered that the issue was framed regarding the merit of the case but in view of the fact that defendant himself admits in para 1 in its written statement that the lease between the parties expires on 9th February, 1997, said issue has lost its relevance in view of the application of the plaintiff under Order 12 Rule 6 based on the defendant's admission in paragraph 1 of the written statement. As a matter of fact the objection of the learned counsel for the defendant as contained in IA No. 11509/96 was disposed of by order of the Court and application of the plaintiff under Order 12 Rule 6 was listed for further orders on 24th March 1997. Thereafter the matter was adjourned and on 21st July, 1997 when the matter was listed in Court, counsel for the defendant sought time to find out as to whether the matter could be settled between the parties. Again on 17th September, 1997 the statement was made by the counsel appearing for the defendant that Mr. Ajit Singh had talked with one of the Directors of the plaintiff company and some more time may be given to finalise the matter between the parties and that is why the matter was adjourned to 30th September, 1997. Again at the request of the counsel for the defendant, the matter was adjourned from 30th September, 1997 to 3rd November, 1997 to settle the matter. In the meanwhile another IA No. 10452/97 and IA No. 10603/97 were filed for adjourning the suit sine die. These I.As were disposed of by the Court by its order dated 26th November, 1997.

    It is in this background taking into consideration the admission of the defendant in paragraph 1 of the written statement, the application under Order 12 Rule 6 has been filed by the plaintiff. Although Mr. Malhotra learned counsel appearing for the plaintiff has contended that in paragraph 26 of the plaint he has mentioned that a notice under Section 106 of the Transfer of Property Act was served on the defendant independent of the agreement which was filed and has been disputed by the defendant. He has also argued that in paragraph 27 of the plaint, the basis of the suit is not only the agreement but termination of tenancy of the defendant pursuant to the notice served as mentioned in paragraph 26 of the plaint. Mr. Malhotra has contended that a separate cause of action distinct and different, not based on the agreement accured in favour of plaintiff.

    I have given my careful consideration to the arguments advanced by the learned counsel for the parties. There cannot be any dispute with the proposition of law that in a case where the facts are not admitted or different questions of facts and law arise for consideration, decree of possession may not be passed. To that extent, there cannot be two opinions in so far as Baljit Kaur's case (supra) is concerned. Relief under Order 12 Rule 6 CPC is a discretionary relief depending upon the facts and circumstances of each case. However in the case before me, where the defendant himself admits in the written statement taking into consideration all the averments in the plaint that the lease shall expire on 9th February, 1997 and that stand was taken by the defendant on 16th April, 1991 when the written statement was filed. How long the Court will allow the defendant to be in possession after clear and unequivocal statement made by defendant on its free will and accord? This Court need not go into such questions which are frivolous in nature and are made only to delay the decision.

    Look the plight of a plaintiff. Even in view of the specific statement/averment made in the written statement as early as in 1991 that the lease shall expire in February, 1997, the plaintiff is denied the right of possession now on the ground that the relief for possession was not prayed in the suit or the suit was filed on the basis of an agreement which was not in existance. The defendnat cannot be allowed to reprobate and aprobate. This will amount to blowing hot and cold simultaneously. It is all the more alarming to see these kinds of objections coming from bank, public sector undertaking or the Government Department. Least the Court expect from the defendant which is a Bank is to have some commitment to their own written statement and ought not to have shifted stands in the matter in hand. The whole attitute of the defendant in this regard amounts to dilatory tactics. I find ho merit in the arguments of the learned counsel for the defendant that at the time of filing the suit there was no agreement between the parties or that the suit was misconceived or premature. If during the pendency of the suit an admission comes from the defendant the Court can take the same into consideration. Parties cannot be permitted to resile from that admission, otherwise whole system of judicial administration will be a mockery in the conditions prevalent today where the justice system is over burdened.

    In S.L Associates Pvt. Ltd. v. Karnataka Handloom Development Corpn. 62 (1996) DLT 386 in somewhat similar circumstances this Court held:

    Even assuming in favour of the plaintiff that the lease was to be further extended for a period of three years without the consent of the plaintiff as per the terms of the said agreement. That period of three years has also now come to an end during the pendency of the suit. No doubt, a suit must be practical in all stages on the cause of action as it existed on its date of commencement. But the Court may however in suitable cases take notice of the events which have happened since the institution of the suit and afford relief to the parties on the basis of altered conditions. This must be done by the Court by giving relief to the parties on the basis of altered circumstances in order to shorten litigation and get complete justice between the parties. As the defendant has entered into the possession on account of lease deed and such a period of lease deed is offered during the pendency of the suit by giving the interpretation of the terms of the agreement in favour of the defendant. The plaintiff is entitled to get a relief of eviction under the provisions of Rule 6 of Order. 12 CPC. The facts of the case before me are exactly similar with the facts of the case before the Division Bench of the Madhya Pradesh High Court in the case of Sikar Chand and Others v. Mast Bari Bai and Others (AIR 1974 Madhya Pradesh 75) and in that case also a decree for eviction who passed in favour of the plaintiff under the provisions of Rule 6 Order 16 of CPC that would be quite clear from the following head note of the said case:

    “Where in a suit for eviction after the expiry of a lease on the defence being taken that under a compromise the term of the lease was extended by 10 years the plaintiff made an application (without admitting the agreement) that even under Order 12 Rule 6 since the extended term had also expired, it was open to the Court to base a judgment under Order 12 Rule 6 against the defendant on the basis of his own admissions because it is clear from the case as set up by him that he was not entitled to continue in possession of any case after the expiry of the fresh term of 10 years.

    The words “otherwise” in Order 12 Rule 6 clearly indicates that it is open to the Court to base the judgment on statements made by a party not only in the pleadings but also de hors the pleadings. Such admissions may be made either expressly or constructively.

    It is no doubt true that ordinarily the plaintiff is entitled to a relief only on the basis of the cause of action stated in the plaint but it is open to the Court in suitable cases to afford a relief on the basis of the case as set up by the defendant. In such a case there is no prejudice to the defendant because the relief legitimately springs from the case as set up by him.”

    In spite of admission by the defendant, the defendant was not prepared to vacate the premises even in 1997 or today. Another objection was taken by the defendant with regard to some letter which has been received from some other co-owner of the property in question which objection has been disposed of by this Court by its order dated 26th November, 1997. Pursuant to the notice issued to the other co-owner Mr. Makhija has put in appearance.

    The Division Bench of this Court in 1997 II Apex Decision (Delhi) 518 in Surjit Sachdev… v. Kazakhstan Investment Services Pvt. Ltd. & Ors.… while dealing with Order 12 Rule 6 CPC held that after lease came to an end the defendants had no right to continue in possession. In para 17 of the said judgment the Court ordered as under:

    “The question now is that whether there is any admission or not so as to entitle the plaintiff to have a decree for possession. The factors which deserve to be taken into consideration in order to enable the Court to pass a decree in plaintiffs favour as regards possession of the suit property by defendant as a tenancy; and (b) determination of such relation in any of the contingency as envisaged in Section 111 of the Transfer of Property Act. One of the modes stated therein is by efflux of time limited by the lease. Only on unequivocal admission of the above two factors will entitle the plaintiff to a decree on admission. Admission need not be made expressly in the pleadings. Even on constructive admissions Court can proceed to pass a decree in plaintiffs favour.”

    From the admission made in para 1 of the written statement, I hold that it was an unequivocal admission by the defendant which entitles the plaintiff to have a decree for possession. In the circumstances, I pass a decree of possession against the defendant and allow the application of the plaintiff under Order 12 Rule 6. Let the possession be handed over by the defendant to the plaintiff within four weeks. At the time of handing over the possession, the defendant will give notice to the other co-owner of the property Shri Rakesh Khanna who may also be present at the time of handing over the possession of property No.H-11 Middle Circle (basement) Connaught Circus, New Delhi to the plaintiff.

    Application Nos. 7065/96, 11509/96 and 1036/97 are disposed of accordingly. Suit No. 846/90

    List this matter for further proceedings on 2nd March, 1998.

    Use AI to get other relevant cases.

    Comments

    Vikas Theatres & Exhibitors v. Punjab & Sind Bank.
    (Jan 7, 1998)