Interlocutory Orders for Delivery of Property Under Order XXXIX Rule 10 Exist Independent of Decrees on Admission

The Respondent/Plaintiff, a construction company, was awarded a civil works contract by the Appellant/Defendant via a Letter of Intent (LOI) dated 14.05.2024

Following disputes regarding work progress and payment of RA bills, the Plaintiff filed a suit for recovery of dues and a mandatory injunction for the return of its machinery and equipment stationed at the project site

The Defendant admitted the contractual relationship and the presence of the machinery but claimed a right to retain it pending "reconciliation of accounts" due to alleged excess mobilization advances

The District Judge, noting the Defendant's refusal to pay rentals for the idle machinery and the absence of any contractual provision allowing such retention, passed a part-decree under Order XII Rule 6 CPC and directed the immediate release/delivery of the equipment under Order XXXIX Rule 10 CPC

The Defendant appealed, arguing that the admission was qualified and that the order erroneously bypassed formal execution proceedings

Order XII Rule 6 of the CPC, which allows for a judgment on admissions where no further trial is required on a specific fact

Order XXXIX Rule 10 of the CPC, which empowers a court to order the delivery of a thing capable of delivery if a party admits it belongs to another

Section 151 of the CPC regarding inherent powers to do justice and prevent the waste of national assets

Precedential weight was given to Nokia Technologies OY v. Guangdong Oppo Mobile Telecommunications Corp. Ltd., which established that the threshold for admission under Order XXXIX Rule 10 is distinct and broader than Order XII Rule 6 and can be utilized for pro-tem balancing of equities

The Court held that the Defendant's admission was unambiguous: while the monetary dues were contested, there was no dispute that the machinery belonged to the Plaintiff and that the LOI did not authorize its retention as security

Consequently, the "qualified" nature of the admission (claiming retention for account reconciliation) was legally untenable as it lacked contractual or statutory backing

Regarding the delivery mechanism, the Court reasoned that Order XXXIX Rule 10 is an interlocutory tool designed for "alacrity" to prevent the decay of property and economic waste

The Court rejected the argument that an execution petition under Order XXI was mandatory before delivery, observing that once a court has custody of property (via a Receiver), it has the inherent power under Section 151 to release it to the rightful owner to balance equities, especially when the machinery is incurring rental losses and depreciating

It held that a direction under Order XXXIX Rule 10 CPC is independent of the formal execution of a decree under Order XII Rule 6 CPC and can be issued to prevent national wastage or irreparable loss

The Court affirmed that while a formal decree must be drawn for the judgment under Order XII Rule 6, the Trial Court was well within its rights to order immediate delivery of the machinery to the Plaintiff to "undo a wrong" in the exercise of its inherent and interlocutory powers