REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.  4645 OF 2022

(ARISING OUT OF SLP (CIVIL) NO.13800 OF 2021)

Karan Kapoor                                       …Appellant

Versus

Madhuri Kumar                     ...Respondent

J U D G M E N T

J.K. Maheshwari, J.

Leave granted.

2. This   appeal   arises   out   of   the   Judgment   dated

08.04.2021, passed by the High Court of Delhi in Regular

First Appeal No.218 of 2021 (hereinafter referred as ‘RFA

No.218 of 2021’) preferred by the Appellant, whereby the said

RFA was dismissed and the High Court thereby upheld the

Order dated 01.12.2020 passed in Civil Suit No.867 of 2018

and Review Order dated 17.02.2021 in Civil Suit No.867 of

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2018 passed by ADJ­O7, Saket Court, (South East), New

Delhi.

3. The brief facts of the matter are that Appellant was a

tenant   in   the   Residential   Property   owned   by   Respondent

bearing No. B­228, Ground Floor, Greater Kailash­1, New

Delhi­110048, including the built­up area in the stilt portion

of the building (hereinafter referred as the ‘Suit Property’),

which comprises of drawing room, dining room, a foyer, four

bedrooms with attached bathrooms, kitchen, lounge, service

area   and   a   servant   quarter   with   common   bathroom   and

parking for two cars. The Respondent­Landlord entered into a

Lease   Agreement   dated   07.08.2011   with   proprietorship

concern of the Appellant, namely M/s. Fantasy Lights, at

monthly rent of Rs.1,17,000/­ for a period of 24 months

starting from 07.08.2011 till 07.08.2013 and interest free

security deposit of Rs.3,51,000/­ (Three Lakhs Fifty – One

Thousand Only) was paid by the Appellant at the time of the

execution of the Lease Agreement. After the expiry of the

Lease   Agreement,   an   extended   Lease   Agreement   for

subsequent term of 11 months was executed on 07.08.2013

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at the rate of Rent of Rs.1,50,000/­ per month which was to

expire on 06.07.2014. The Security Deposit paid earlier was

retained   as   Interest   Free   Security   Deposit   towards   Lease

Agreement dated 07.08.2013 as well.

4. The Appellant tenant did not pay any rent after the

expiry of the extended Lease Agreement dated 06.07.2014

with effect from 07.07.2014 and continued in occupation of

the   Suit   Property.   A   Legal   Notice   dated   12.04.2018   was

served by the Respondent landlord upon the Appellant calling

him to vacate the Suit Property. However, even thereafter,

neither the Suit Property was vacated, nor the rent was paid

which led the Respondent/Plaintiff to file Civil Suit No.867 of

2018 for recovery of possession, arrears of rent, mesne profit,

Pendent   Lite,   and   interest   before   ADJ­O7,   Saket   Court,

(South East), New Delhi. The Appellant/Defendant filed a

Written Statement contending that after the expiry of the

Lease Agreement dated 07.08.2013, the Respondent/Plaintiff

had approached to him and made the offer to sell the right,

title and interest in the Suit Property, in furtherance of which

Agreement to Sell dated 22.04.2017 (herein after referred as

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‘ATS­I’)   was   executed   between   the   parties   for   a   sum   of

Rs.3,60,00,000/­ (Three Crores and Sixty Lakhs Only) and it

was allegedly agreed that the rent accrued for the year 2014­

2017 be adjusted into the said Agreement to Sell. Appellant

also contended that in addition to the execution of ATS­I, he

also agreed to transfer its right, title and interest of a plot of

land   situated   at   Amloh   in   favor   of   Respondent   for   a

consideration   of   Rs.15   Lakhs   through   Agreement   to   Sell

(‘ATS­II’) which would partially satisfy the obligations of sale

consideration of ATS­I. Further, it was averred in the Written

Statement   that   certain   adjustments   were   made   to   the

consideration payable for the subject property consequent to

a new Agreement to Sell (‘ATS­III’) was executed.

5. In view of the averments made in Written Statement

filed by the Appellant/Defendant in Civil Suit No.867 of 2018,

the Respondent/Plaintiff filed an Application under Order XII

Rule 6 and another application under Order XXXIX Rule 10

of the Code of Civil Procedure (in short ‘CPC’) with a prayer to

pass   a   judgment   on   admission   of   facts   made   in   Written

Statement and to draw a decree accordingly.

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6. The contention of the Respondent/Plaintiff before the

Trial Court was that looking to the admissions made with

respect to the Landlord­Tenant relationship, rate of rent and

the   defense   taken   by   the   Appellant/Defendant   in  Written

Statement   is   sham,   as   no   consideration   was   exchanged.

While on the other side, the Appellant/Defendant contended

that   the   Respondent/Plaintiff   has   concealed   the   material

facts regarding existence of ATS­I, II and III, though the two

Lease Agreement dated 07.08.2011 and dated 07.08.2013

were not denied. It was said only on the expiry of the term of

the   extended   Lease   Agreement,   the   Respondent/Plaintiff

approached the Appellant/Defendant and offered to sell the

Suit Property. Further it was contended that, no demand to

the accrued rent was made as it was agreed between the

parties that the amount of rent shall be adjusted in ATS. In

furtherance of which ATS­I dated 22.04.2017 was executed

by the Respondent/Plaintiff in favor of Appellant/Defendant

with respect to Suit Property where Appellant agreed to pay

Rs.3,60,00,000/­ as consideration. It was also contended by

the Appellant/Defendant before the Trial Court that earlier

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Rs.4.7 Cr. was agreed towards consideration, however, after

the payment of enormous earnest money to the Respondent

before signing ATS­I, the consideration was reduced to Rs.3.6

Cr.   Subsequently,   Second   Agreement   to   Sell   dated

22.05.2017 was signed to transfer Appellant’s rights, title and

interest in the property situated in Amloh to representatives

of Respondent for a sum of Rs.15,00,000/­ (Fifteen Lakhs

Only) which was to be adjusted towards the consideration of

Rs.3.6   Cr.   payable   to   the   Respondent.   Further,   Third

Agreement to Sell dated 30.12.2017 was executed between

the   parties  consequent   to  the  aforesaid  adjustments.   The

Appellant/Defendant also argued before the Trial Court to

have approached the Allahabad Bank for loan amounting to

Rs.1.7   Cr.   to   purchase   the   Suit   Property,   but   the

Respondent/Plaintiff   refused   to   execute   the   subject   Sale

Deed. Lastly, it was submitted that there is no clear and

categorical   admission   from   his   side   and   the   Written

Statement filed by him and the suit has to be read as a whole

and   not   in   isolation.   Moreover,   the   present   Suit   involves

adjudication of facts and serious questions of law which is

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possible only after leading oral evidence and on appreciating

it, therefore, no decree under Order XII Rule 6 can be passed

on the pleadings of the parties. 

7. The Trial Court perused the material on record and in

Para 17 of the order dated 01.12.2020 recorded that there are

certain undisputed facts. Those are: (a) The Plaintiff being

absolute owner of the suit property is not disputed; (b) The

identity of the suit property is not disputed; (c) Execution of

the Lease Agreement dated 07.08.2011 between the Plaintiff

and M/s Fantasy Lights @ Rs.1,17,000/­ per month for the

period of two years is not disputed; (d) Interests free security

deposit of Rs.3,50,000/­ paid by the Defendant to Plaintiff is

not disputed; (e) The execution of Lease Agreement dated

07.08.2013   between   the   Plaintiff   and   Defendant   for   11

months @ Rs.1,50,000/­ per month is also not disputed; (f) It

is not disputed that no rent has been paid since July 2014

though  certain  defenses  have  been  taken  with respect  to

payment of the said rent; (g) The issuance and receipt of the

legal notice dated 12.04.2018 calling upon the Defendant to

hand over the possession is also not disputed. 

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8.Apart from dealing with the aforementioned admissions,

the Trial Court also dealt with each defense taken by the

Appellant  in   the   written   statement   and   observed:   (i)

Appellant/Respondent did not mention any amount which

has been paid by him as ‘Bayana’ in lieu of the ATS­I dated

22.04.2017. It is beyond the comprehension of the Court as

to what stopped the Appellant  from mentioning the exact

figures of the amount paid by the Appellant as ‘Bayana’; (ii)

No   document   was   placed   before   the   Court   by

Appellant/Defendant to show the quantum of amount paid as

consideration thus ATS­I executed without any consideration

has no significance; (iii) ATS­II with respect to the  Amloh

Property has also been filed and the same cannot be relied

upon   for   the   aforesaid   reasons;   (iv)   None   of   the   original

Agreements   to   Sell   have   been   filed;   (v)   It   is   a   settled

proposition of law that even if the consideration has been

exchanged the purchaser does not become the owner of the

property till the time the registered Sale Deed is executed in

his favor and the Tenant­Landlord relationship cannot come

to an end on the execution of the Agreement to Sell. 

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9.The   Trial   Court   relying   upon   the   admissions   as

aforementioned, passed the judgment and decree allowing the

application under Order XII Rule 6 of CPC for delivery of

possession with respect to the Suit Property in favor of the

Respondent/Plaintiff. Aggrieved Appellant/Defendant sought

review of the Order dated 01.12.2020 wherein the Trial Court

was   pleased   to   dismiss   the   same   vide   order   dated

17.02.2021.

10.The Appellant preferred Regular First Appeal No.218 of

2021 before the High Court of Delhi challenging both the

orders i.e. order dated 01.12.2020 passed by Trial Court and

review   order   dated   17.02.2021.   It   was   the   case   of   the

Appellant   before   the   High   Court   that   a   Suit   for   specific

performance in relation to aforementioned three Agreements

to Sell is pending, in which the High Court has issued notice,

but nowhere the Trial Court has considered the same in the

impugned judgment. Further, Appellant also contended that

no categoric admission was made in the Written Statement to

pass   judgment   granting   decree   of   possession   to   the

Respondent in exercise of discretion under Order XII Rule 6

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of  CPC.   Lastly,  it   was  argued  that   the   Sale   Deed   is   not

required   to   be   registered   in   view   of   Section   17(2)   of   the

Registration Act. 

11.The High Court vide impugned order dated 08.04.2021

rejected the Appeal with observations that the Trial Court in

its order dated 17.02.2021 has noted that there has been

clear   admission   with   regard   to   relationship   of   Landlord­

Tenant  and   the   rent   paid  by   the   Appellant.   Further,   the

Appellate   Court   upheld   the   Trial   Court’s   findings   qua

admission of the facts. The High Court also noted that the

findings qua admissions is not challenged by the Appellant

which is sufficient to grant the decree for possession of suit

property. Further, High Court observed that it is settled in

law   that   the   suit   for   specific   performance   filed   by   the

Appellant is of no impediment for the Trial Court to proceed

with or decide the Suit for possession based on Landlord­

Tenant relationship. Lastly, an ATS of immovable property

where   the   possession   of   premises   is   delivered   in   part

performance can only be possible by registered document

after   paying   the   requisite   stamp   duty.   The   High   Court

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dismissed   the   Regular   First   Appeal   with   the   said

observations, which is challenged by the Appellant by filing

instant appeal.

12.Appellant has argued before this Court that he is well

within his rights to defend his possession in the suit property

having satisfied the conditions enunciated by this Court in

Shrimant   Rao   Suryavanshi   v.   Prahlad   Bhairoba

Suryavanshi  ­ 2002 (3) SCC 676. As there is an ATS for

transfer   of   rights   in   the   suit   property   in   favor   of   the

Appellant, which has not been disputed to have been signed

by Respondent. The covenants therefore expressly construes

the intention of parties towards the sale and purchase of the

suit property. It is further argued by the Appellant that the

issues put before the Trial Court were triable issues and in

such a scenario the Trial Court should not dismiss the suit in

limine and pass a decree under Order XII Rule 6 of CPC when

only   the   truth   can   be   revealed   by   a   full­fledged   trial.

Appellant also argues that when Seller­Landlord accepted the

earnest money she actually acted under the agreement. This

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acceptance provided by the ATS ended the relationship of

lessor and lessee and the tenancy ceases.

13.Appellant   has   placed   reliance   on  Hari   Steel   and

General Industries Limited and Another v. Daljit Singh

and Others – (2019) 20 SCC 425  and Himani Alloys Ltd.

v. Tata Steel Ltd  reported in ­ 2011 (15) SCC 273   to

contend   that   the   Trial   Court   should   have   refrained   from

exercising   its   jurisdiction   by   decreeing   the   suit   of

Respondent/Plaintiff under Order XII Rule 6 keeping in mind

that the judgment on admission is judgment without trial

which permanently denies any remedy to the Appellant on

merit. Further, by referring to the case of R. Kanthimathi v.

Beatrice   Xavier  reported   in   ­   2000   (9)   SCC   339  the

Appellant argued that by accepting the earnest money, the

Landlord­Seller has actually acted under the agreement and

thus the relationship of landlord and tenant has ceased to

exist.

14.Per Contra, on behalf of Respondent, it has been argued

that the Appellant came in the possession of suit premises by

virtue of lease deed dated 07.08.2011 and extended lease

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deed dated 07.08.2013 and is continuing to be in possession

without payment of rent from 2014 onwards, which makes

out a classic case of abuse of due process of law. It was urged

that Appellant has not put in possession in furtherance to the

ATS, however without proving the contents of ATS his status

would   not   change.   It   was   further   argued   that   once   it   is

admitted   that   there   is   undisputed   Landlord­Tenant

relationship   between   parties;   a   termination   notice   under

Section 106 has been issued prior to filing the suit followed

by receipt of the rent. Thus, the Respondent have a  prima

facie  case to decree the suit on admission under Order XII

Rule 6. Further, it has been argued that the defense under

Section 53­A of the Transfer of Property Act, 1882 can only be

applicable when consideration has been exchanged which is

not the case of the Appellant. Furthermore, learned senior

counsel placing reliance on Nagindas Ramdas v. Dalptram

Iccharam ­ 1974 (1) SCC 242 argued that the admissions in

pleadings or in proceedings of Court at the time of hearing of

the   case   stand   on   higher   footing   and   are   admissible   in

evidence as per Section 58 of the Evidence Act, 1872. Thus,

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in light of the facts as discussed, the Respondent has a good

case for a judgment on admission and the courts below have

not committed any error while passing the judgment.

15.Heard learned counsel for both the parties and perused

the records. Prior to appreciating the arguments in the facts

and looking to the controversy involved in the present case, it

is required to know the object and the purport to introduce

Order XII of CPC. The relevant provisions are reproduced

hereinunder:

“1. Notice of admission of case.—Any party to a suit may

give notice, by his pleading, or otherwise in writing, that he

admits the truth of the whole or any part of the case of any

other party.

2. Notice to admit documents.—Either party may call upon

the other party [to admit, within 7 [seven] days from the

date of service of the notice any document,] saving all

exceptions; and in case of refusal or neglect to admit, after

such notice, the costs of proving any such document shall be

paid by the party so neglecting or refusing, whatever the

result of the suit may be, unless the Court otherwise directs;

and no costs of proving any document shall be allowed unless

such notice is given, except where the omission to give the

notice is, in the opinion of the Court, a saving of expense.

[2A. Document to be deemed to be admitted if not denied

after service of notice to admit documents.—(1) Every

document which a party is called upon to admit, if not denied

specifically or by necessary implication, or stated to be not

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admitted in the pleading of that party or in his reply to the

notice to admit documents, shall be deemed to be admitted

except as against a person under a disability: Provided that

the Court may, in its discretion and for reasons to be

recorded, require any document so admitted to be proved

otherwise than by such admission. (2) Where a party

unreasonably neglects or refuses to admit a document after

the service on him of the notice to admit documents, the

Court may direct him to pay costs to the other party by way

of compensation.]

3. Form of notice.—A notice to admit documents shall be in

Form No. 9 in Appendix C, with such variations as

circumstances may require.

[3A. Power of Court to record admission.—Notwithstanding

that no notice to admit documents has been given under rule

2, the Court may, at any stage of the proceeding before it, of

its own motion, call upon any party to admit any document

and shall, in such a case, record whether the party admits or

refuses or neglects to admit such document.]

4. Notice to admit acts.—Any party may, by notice in writing,

at any time not later than nine days before the day fixed for

the hearing, call on any other party to admit, for the

purposes of the suit only, any specific fact or facts, mentioned

in such notice. And in case of refusal or neglect to admit the

same within six days after service of such notice, or within

such further time as may be allowed by the Court, the costs of

proving such fact or facts shall be paid by the party so

neglecting or refusing, whatever the result of the suit may be,

unless the Court otherwise directs: Provided that any

admission made in pursuance of such notice is to be deemed

to be made only for the purposes of the particular suit, and

not as an admission to be used against the party on any other

occasion or in favour of any person other than the party

giving the notice.

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5. Form of admissions. —A notice to admit facts shall be in

Form No. 10 in Appendix C, and admissions of facts shall be

in Form No. 11 in Appendix C, with such variations as

circumstances may require.

6. Judgment on admissions. —(1) Where admissions of fact

have been made either in the pleading or otherwise, whether

orally or in writing, the Court may at any stage of the suit,

either on the application of any party or of its own motion

and without waiting for the determination of any other

question between the parties, make such order or give such

judgment as it may think fit, having regard to such

admissions. (2) Whenever a judgment is pronounced under

sub-rule (1) a decree shall be drawn up in accordance with

the judgment and the decree shall bear the date on which the

judgment was pronounced”

Thus, the scheme of Order XII Rule 1 prescribes that any

party to a suit may give notice, by his pleading, or otherwise

in writing that he admits the truth of whole or any part of the

case to other party. As per Rule 2 of Order XII notice to admit

the documents may be given by either party to the other party

within the specified time for admission of a document and in

case of refusal or admission of the document after the notice,

the cost of proving such document shall be borne by the

party who neglects or refuse, which shall be based on the

discretion   of   the   Court.   Rule   2A   enables   the   deemed

admission if after notice the document has not been denied.

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The  said  notice  is   required  to  be   given  in  Form  No.9  of

Appendix ‘C’ of CPC. Rule 3A confers overriding powers to the

Court, that even in absence of a notice to admit a document

under Rule 2, the Court may record such admission on its

own motion or by calling upon a party. The Court also have a

power   to   record   whether   the   party   admits   or   refuses   or

neglect to admit such document. Rule 4 of Order XII relates

to notice to admit the facts. Any party may by a notice in

writing at any time not later than 9 days before the day fixed

for the hearing, call upon any other party to admit for the

purposes of suit only, any specific fact or facts, mentioned in

such notice that is required to be answered within a specified

time or within such further time as directed by the Court in

case of refusal or neglect to admit the same, the cost of

proving such fact or facts be paid by the parties as directed.

By adding a proviso, it was made clear that the admission, if

any, made in a proceeding would be relating to the same

proceeding not for any other proceedings. The notice under

Rule 4 is required to be given in Form No.10 of Appendix ‘C’

of CPC as prescribed in Rule 5. Rule 6 confers discretionary

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power to a Court who ‘may’ at any stage of the suit or suits

on the application of any party or in its own motion and

without   waiting   for   determination   of   any   other   question

between the parties makes such order or gives such judgment

as it may think fit having regard to such admission. 

16.Thus, legislative intent is clear by using the word ‘may’

and ‘as it may think fit’ to the nature of admission. The said

power is discretionary which should be only exercised when

specific,   clear   and   categorical   admission   of   facts   and

documents are on record, otherwise the Court can refuse to

invoke the power of Order XII Rule 6. The said provision has

been brought with intent that if admission of facts raised by

one side is admitted by other, and the Court is satisfied to the

nature of admission, then the parties are not compelled for

full­fledged trial and the judgment and order can be directed

without taking any evidence. Therefore, to save the time and

money of the Court and respective parties, the said provision

has been brought in the statute. As per above discussion, it is

clear that to pass a judgment on admission, the Court if

thinks fit may pass an order at any stage of the suit. In case

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the judgment is pronounced by the Court a decree be drawn

accordingly and parties to the case is not required to go for

trial. 

17.Some special provisions have been made in Rules 7, 8

and   9   regarding   affidavit   of   signature,   notice   to   produce

documents and also to the cost which may not have much

relevance to the facts of the present case hence, not being

discussed elaborately in this judgment. 

18.On the issue of discretion of Court to pass judgment on

admission, a three­Judge Bench of this Court in the case of

S.M. Asif v. Virendar Kumar Bajaj – (2015) 9 SCC 287

made the legislative intent clear to use the word ‘may’ which

clearly stipulates that the power under Order XII Rule 6 of

CPC is discretionary and cannot be claimed as a matter of

right. In the said case, the suit for eviction was filed by the

Respondent­Landlord   against   the   Appellant­Tenant.   The

relationship of tenancy was admitted including the period of

Lease Agreement. The Plaintiffs’ claim was resisted by the

Defendant setting up a plea that the property in question was

agreed to be sold by an agreement and the advance of Rs.

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82,50,000/­ was paid. The Defendant in course of taking the

defense   stoutly   denied   that   Respondent/Plaintiff   has

continued to be the landlord after entering into Agreement to

Sell. The suit for specific performance was also filed which of

course was contested by the Plaintiff. In the said case, this

Court was of the view that deciding such issues requires

appreciation of evidence. Mere relationship of landlord and

tenant cannot be said to be an unequivocal admission to

decree the suit under Order XII Rule 6 of CPC. Resultantly,

this Court by setting aside the judgment passed by the High

Court remitted the matter back to the Trial Court subject to

deposit of the arrears of the rent and the compensation for

use of occupation of the suit premises. Such deposit was

subject to final outcome of the eviction as well as suit for

specific performance. 

19.In the context of the said legal position, reverting to the

facts of the present case, it is apparent that the first Lease

Agreement was executed on 07.08.2011 on a monthly rent of

Rs.1,17,000/­ of a suit premises. The said Lease Agreement

was for a period of 02 years ending in July 2013. By the

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consent   of   the   parties   extended   Lease   Agreement   dated

07.08.2013 was executed for a further period of 11 months

for   a   monthly   rent   of   Rs.1,50,000/­   with   approximate

increase   in   rent   amount   by   30%   for   the   next   one   year.

Admittedly, the notice for eviction was issued terminating the

lease due to non­payment of the rent after the expiry of the

extended   lease   period   which   is   due   for   payment   by   the

Defendant. The suit for eviction was filed on 18.05.2018 for

possession (based on Landlord­Tenant relationship), arrears

of rent,  mesne profit  and  pendente lite. The said suit was

contested by the Defendant in which the ownership was not

denied.   The   execution   of   first   Lease   Agreement   dated

07.08.2011   and   the   extended   Lease   Agreement   dated

07.08.2013 was also not denied. The monthly tenancy and

payment of rent in terms of Lease Agreement is also not

denied by the Defendant. The Defendant has taken a defense

that the property belonging to him in Amloh was agreed to be

sold to the Plaintiff to which effect ATS­II dated 25.05.2017

was executed. Further the Defendant has contended that,

ATS­III   dated   30.12.2017   was   executed   after   some

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adjustments   in   consideration   was   made.   Hence,   the

Defendant argued that on account of execution of the three

Agreements to Sell with respect to the suit property for a sum

of   Rs.   3,60,00,000/­,   the   relationship   of   Landlord­Tenant

ceased to exist and the Defendant acquired the status of the

owner as he has already parted with the possession of the

property under the Lease Agreement.

20.Learned   counsel   for   the   Appellant   has   placed   heavy

reliance on a judgment of  R. Kanthimathi (supra). In the

said case, this Court has specified that any jural relationship

between two persons could be created through an agreement

and similarly could be changed through an agreement subject

to the limitations under the law. However, it is urged that the

relationship   of   the   Appellant   has   now   been   changed   to

purchaser on signing the ATS­I by landlord subsequent to

lease agreement, therefore the relationship of landlord and

tenant extinguishes. Reliance has also been placed on the

judgment of Himani Alloys Limited (supra) and it has been

urged by Appellant that in case the admission is not of the

amount as alleged and not categoric and clear, the decree

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under Order XII Rule 6 cannot be directed. The case of Hari

Steel (supra) has also been relied upon to contend that the

relief under Order XII Rule 6 is discretionary and the Court

should   not   deny   the   valuable   right   of   the   Defendant   to

contest the suit, meaning thereby, the discretion should be

used only when there is a clear, categorical and unconditional

admission and such right should not be exercised to deny

valuable right of a Defendant to contest the claim based on

defense   taken.   Further,   relying   upon   the   judgment   of

Shrimant   Shanrao   Suryavanshi   (supra),   it   has   been

contended that when a possession is with the Appellant by

virtue   of   a   part   performance   of   agreement   to   sell   as

prescribed under Section 53 of the Transfer of Property Act,

1882, he has right to defend or protect his possession. 

21.On the other hand, Ms. Meenakshi Arora, learned senior

counsel,   placed   reliance   on   the   judgment   of  Nagindas

Ramdas (supra), inter alia, contending that the admissions if

true and clear are the best proof of the fact admitted, it is

also   stated   the   admissions   in   the   pleadings   or   judicial

admissions admissible under Section 58 of the Evidence Act,

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1872, made by the parties or their agents at or before hearing

of   the   case   stands   on   higher   footings   than   evidentiary

admissions. It is binding and constitute the waiver of proof.

Learned senior counsel further submits that the judgment of

R. Kanthimathi (supra) is distinguishable with the present

case.   In   the   said   case,   after   referring   the   terms   of   the

agreement   it   reflected   that   the   major   amount   of   sale

consideration was paid and only Rs.5,000/­ was remaining to

be paid. Also, by conveyance the possession of property was

surrendered, therefore, Court said that the jural relationship

between the persons were changed by way of subsequent

agreement subject to the limitations under the law. While in

the   present   case   ATS­I   was   executed   on   22.04.2017.   In

clause 2 of the said agreement, it was specifically mentioned

“however, no advance – earnest money has been paid to the

first party”. With respect to possession, it was mentioned that

it shall be handed over on spot. Thus, out of the total sale

consideration of Rs.3,60,00,000/­ nothing was paid and the

Appellant was in possession under the Lease Agreement as

tenant. The document Annexure P­1 (Advance Receipt­cum

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Agreement   to   Sale   &   Purchase)   produced   alongwith   the

paperbook   of   appeal   is   a   document   which   has   not   been

produced   before   the   lower   Court.   Thus,   vide   order   dated

07.10.2021, it was made clear by this Court that the said

document be deleted from the paperbook of this case. In view

of the said distinction drawn it was urged that judgment of R.

Kanthimathi (supra) is of no help to the Appellant.

22.Be that as it may, the arguments advanced by both the

sides, in our view can be appreciated by the Trial Court by

affording opportunity to them to lead evidence. As per the

pleadings, there may be admission to the extent of execution

of the Lease Agreement, rate of rent and monthly payment

but simultaneously the defense taken by the Defendant is

also based on ATS­I, II and III. In view of the contents of those

agreements and terms specified therein, the defense as taken

by the Appellant/Defendant is plausible or not is a matter of

trial which may be appreciated by the Court after granting

opportunity to lead evidence by the respective parties. There

may   be   admission   with   respect   to   tenancy   as   per   lease

agreements but the defense as taken is also required to be

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looked   into   by   the   Court   and   there   is   need   to   decide

justiciability of defense by the full­fledged trial. In our view,

for the purpose of Order XII Rule 6, the said admission is not

clear and categorical, so as to exercise a discretion by the

Court   without   dealing   with   the   defense   as   taken   by

Defendant. As we are conscious that any observation made

by this Court may affect the merit of either side, therefore, we

are not recording any finding either on the issue of tenancy or

with respect to the defense as taken by the Defendant. We are

only inclined to say whether the judgment and decree passed

in exercise of the power under Order XII Rule 6 of CPC is

based on clear and categorical admission. In our view, the

facts of the case in hand and the judgment in   S.M. Asif

(supra) are altogether similar, therefore, the ratio of the said

judgment rightly applies to the present case. Consequently,

the   judgment   and   decree   passed   by   the   Trial   Court,   as

confirmed   by   the   High   Court,   only   on   admission   of   fact

without considering the defense in exercise of power under

Order XII Rule 6 of CPC is hereby set­aside. The matter is

remitted   back   to   the   Trial   Court   to   decide   the   suit   as

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expeditiously as possible affording due opportunity to the

parties to record evidence that shall be appreciated by the

Court on merit. 

23.In the present case, the tenant has not paid any amount

of rent w.e.f. 07.07.2014. In a suit based on Landlord­Tenant

relationship, the amount of rent and arrears thereof ought to

be paid in terms of the order of the Court. The said view is

fortified by the judgment of S.M. Asif (supra). As the Lease

Agreement   dated   07.08.2011   and   the   extended   Lease

Agreement dated 07.08.2013, which are not in dispute and

by the extended Lease Agreement, which was for one year,

the rent was increased for the year 2013­2014 by 30%. The

Defendant has not paid any rent till date though the period of

more than 7 years has already passed. Therefore, we direct

that   in   terms   of   the   admitted   fact   by   extended   Lease

Agreement and the increase in the percentage of rent, the

Trial Court shall first decide the issue of payment of monthly

rent applying the said increase on year to year basis and pass

appropriate orders for payment of arrears as well as deposit

of regular monthly rent. The said payment may be subject to

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outcome of the decision of the present suit as well as the suit

for   specific   performance   of   the   agreement   filed   by   the

Appellant.

24.Resultantly,   this   appeal   is   allowed   to   the   extent

indicated hereinabove and the order of High Court and Trial

Court is set aside and the matter is remitted back to the Trial

Court.

      ………..………………...J.

      (INDIRA BANERJEE)

      .….………………………J.

     (J.K. MAHESHWARI)

New Delhi:

July 06, 2022.

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