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2014 (3) TMI 1210 - DELHI HIGH COURTClaim of forfeiture of the Security Deposit raised by the defendants - equitable set-off or not - Seeking a decree against the Defendants No. 1 and 2 on admissions - Order XII Rule 6 of the Civil Procedure Code, 1908 - HELD THAT:- The object of Order XII Rule 6 is to enable a party to obtain a speedy judgment to the extent of the admissions of the Defendant to which relief the Plaintiff is entitled to. The rule permits the passing of the judgment at any stage without waiting for determination of any other question. It is a settled proposition of law that before a judgment can be passed under Order 12 Rule 6, the admission must be clear, unambiguous, unconditional and unequivocal. As per the law laid down by the Supreme Court for a Judgment to be passed on admission, the admission has to be clear, unambiguous and unequivocal. It is an enabling provision, it is neither mandatory nor peremptory but discretionary. The judicial discretion, has to be exercised keeping in mind that a judgment on admission is a judgment without trial which permanently denies any remedy to the defendant, by way of an appeal on merits. The valuable right of a defendant to contest the claim should not be denied unless the admission is clear, unambiguous and unconditional. Seeking setoff of the amount of Rs. 15,00,000/- as the setoff has not been lawfully claimed in the written statement - HELD THAT:- As per the Jitendra Kumar Khan case [[2013 (8) TMI 1057 - SUPREME COURT]] equitable set-off is distinct from the legal set-off as envisaged by Order VIII rule 6 of the Code. Equitable set-off is different than the legal set-off and it is independent of the provisions of the Code of Civil Procedure. However for claiming equitable set-off it must be established that the mutual debts and credits or cross-demands must have arisen out of the same transaction or are connected in the nature and circumstances. The Plea of equitable set-off is raised not as a matter of right but it is within the discretion of the court to entertain and allow such a plea or not. As per the CRB Capital case [[2005 (5) TMI 346 - HIGH COURT OF DELHI]] equitable set-off can be claimed even for an unascertained sum of money provided the same arises out of the same transaction. In the present case, the claim of forfeiture of the Security Deposit raised by the defendants arises out of the same transaction and is in the nature of an equitable set-off. This of course is a prima facie expression of opinion. Whether the claim of forfeiture would be ultimately allowed or not would depend upon the evidence adduced by the Defendants so as to sustain a claim of equitable set-off. Application dismissed.
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