Corporate Lawyer: In Order 12 Rule 6 CPC, admissions made by the defendant, should be pleaded in the application; SC.

Supreme Court of India

Justice R Subhash Reddy

In the case titled as "Hari Steel and General Industries Ltd. & Anr. Vs. Daljit Singh", the Judgment of the High Court allowing application under Order 12 Rule 6 CPC was assailed by the defendant/appellant before the Supreme Court of India.

In the said case Delhi High Court allowed the said application and decreed the suit. The Supreme Court of India while setting aside the order of the High Court held that the issue raised by the defendant/appellant of forged signatures on Agreement to Sell warrants trial and the defence of the defendant that they got only 2 Crore but not 5 Crore also requires trial.

It was further held that the admissions which is there as per the plaintiff, have to be pleaded in the application, like in pleadings or in some documents etc. In present case the admission in balance sheets of defendants was not pleaded in application. Secondly, it was the case of the defendants that the balance sheets of the appellant/ defendant were forged and fabricated in collusion with CA - who is common to the plaintiff and the defendants.

It was also held once the trial is started, the application should not have been allowed. The relief of specific performance sought by the plaintiff is discretionary relief and the relief under O12R6 CPC is also discretionary - it was held that the discretion was wrongly exercised by the High Court in the facts and circumstances of the case. For exercising the power under O12R6 CPC the admission has to be clear and unequivocal.