Order XII Rule 6 CPC: Decree  A Suit On admission must be clear and unambiguous: Kerala High Court

In a recent judgment, the Kerala High Court has provided clarity on the interpretation of Order XII Rule 6 of the Code of Civil Procedure (C.P.C), emphasizing that admissions for a decree on admission must be clear and unambiguous. The court’s observations shed light on several critical aspects of civil procedure and jurisdiction under the Commercial Courts Act, 2015.

The court’s observation on Order XII Rule 6 C.P.C was significant. The judgment stated, “The legislative intent behind this provision is to avoid unnecessary trials and ensure speedy disposal of litigation based on admissions in pleadings. However, the admission should be clear and unambiguous, without leaving room for further evidence or clarification.”

Furthermore, the judgment addressed the jurisdiction of regular civil courts in commercial disputes, particularly in light of the Commercial Courts Act, 2015. The court noted, “Sections 6 and 7 of the Act require a harmonious interpretation to avoid inconsistency between these provisions. While inherent lack of jurisdiction would vitiate proceedings, mere lack of pecuniary or territorial jurisdiction may not.”

The Interpretation of the term “used” in Section 2(1)©(vii) of the Commercial Courts Act was another key point of discussion in the judgment. The court observed, “The term ‘used’ denotes ‘actually used,’ not ‘likely to be used’ or ‘ready for use.’ This interpretation includes disputes related to license fees or other periodic payments for the use of immovable property.”

The judgment also dealt with the application for attachment before judgment, stressing the importance of due process. The court stated, “An application for attachment before judgment should not be summarily rejected without issuing a show-cause notice or passing a conditional order of attachment. Rule 5 of Order XXXVIII C.P.C must be adhered to.”

This judgment serves as a valuable reference for legal practitioners, highlighting the need for precision in admissions and a comprehensive understanding of jurisdiction in commercial disputes. It reaffirms the importance of adhering to procedural rules, ensuring a fair and just legal process.

Legal experts and practitioners have welcomed the clarity provided by the Kerala High Court in this judgment, which is expected to have a significant impact on civil litigation procedures and jurisdictional matters.

Date of Decision: 2 November 2023

C.K. SURENDRAN VS KUNHIMOOSA