In Brief
Hari Steel and General Industries Ltd. sought specific performance of an agreement to sell property and business assets to the respondents for Rs. 55.50 crores. The respondents filed an application under Order XII Rule 6 CPC claiming judgment on admissions, alleging the defendants had admitted entering into the agreement and receiving Rs. 5 crores. The High Court allowed the application. The Supreme Court set aside the High Court's order, holding that the defendants' admissions were not categorical and unconditional because they simultaneously disputed the authenticity of key pages of the agreement, alleged forgery of signatures, and disputed receiving Rs. 3 crores in cash. The Court held that when serious factual disputes go to the root of the case and issues have been framed, discretion under Order XII Rule 6 should not be exercised, and the suit should proceed to trial.
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