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2023 Supreme(SC) 1167

SUPREME COURT OF INDIA
B.V. NAGARATHNA, UJJAL BHUYAN, JJ.
Bhagyashree Anant Gaonkar – Appellant
Versus
Narendra @ Nagesh Bharma Holkar and Another – Respondents
Civil Appeal No. 4935 of 2023, SLP (C) No. 12163 of 2023
Decided On : 07-08-2023

Important Points

IMPORTANT POINT
Second appeal – Section 100 of CPC grants power to High Court to consider a regular Second Appeal only on a substantial question of law.

Subject

Civil Law - Appeal

Act Referred

Headnote

Civil Procedure Code, 1908 – Section 100 – Second appeal – Section 100 of CPC grants power to High Court to consider a regular Second Appeal only on a substantial question of law – First Appellate Court is final court on questions of facts but only if there is any substantial question of law, second appeal could be considered and raised by High Court and such substantial questions of law ought to be answered – It is the practice and a mandatory requirement that at the time of admitting regular second appeal, substantial questions of law must be framed, on the basis of which arguments must be advanced and a decision given thereon – It is also permitted that once arguments have been advanced, court is at liberty to re-frame or frame fresh substantial questions of law and answer the same on hearing Counsel for respective parties. (Para 7)

Facts of the case:

Judgment of High Court of Karnataka dated 06.01.2023 passed in Regular Second Appeal No. 5085 of 2011 is called into question in this appeal.

Findings of Court:

High Court has not adverted to substantial questions of law which may have been framed in appeal inasmuch as there is no reference to the same in impugned judgment. Second appeal has been disposed of as if it was a first appeal. Impugned judgment of the High Court set aside and matter remanded to the High Court for a fresh consideration.

Result : Civil Appeal allowed.

Legal Category Hierarchy

  • practice and procedure
    • civil procedure code
      • appeals
        • second appeal (Para 7, 8, 11, 12)

Advocates:
Advocate Appeared:
For the Petitioners: V. Chitambaresh, Ankolekar Gurudatta, Rajendra Koushik, Korada Pramod Kumar.
For the Respondents: Chandrashekhar A. Chakalabbi, S.K. Pandey, Awanish Kumar, Anshul Rai, Abhinav Garg.

Table of Contents

1. Appeal against a High Court judgment in a regular second appeal under Section 100 of the Code of Civil Procedure, 1908. (Para 3 )

2. Appellant contends the High Court treated a second appeal as a first appeal by ignoring substantial questions of law; respondent argues the merits justify the decision. (Para 4 , 6 )

3. The High Court failed to formulate or answer substantial questions of law, erroneously treating the second appeal as a first appeal and reappreciating evidence. (Para 7 , 11 )

4. Jurisdiction under Section 100 CPC is confined to substantial questions of law; formulation of such questions is a condition precedent for entertaining a second appeal. (Para 7 , 8 )

5. Impugned judgment set aside and matter remanded to the High Court for fresh consideration and formulation of substantial questions of law. (Para 12 , 13 )

6. What is the scope of the High Court's jurisdiction in a regular second appeal under Section 100 CPC?

Jurisdiction is confined only to appeals involving a substantial question of law. The High Court cannot interfere with pure questions of fact, as the First Appellate Court is the final court on factual findings. (Para 7 , 8 )

7. Is the formulation of a substantial question of law mandatory for admitting a second appeal?

Yes, it is a mandatory requirement and a condition precedent. The High Court must be satisfied that a substantial question of law is involved and must formulate that question for the appeal to be heard. (Para 7 , 8 )

8. Can a second appeal be decided on equitable grounds or by reappreciating evidence?

No. A second appeal cannot be decided on equitable grounds or by reappreciating evidence to interfere with findings of fact; it must be decided strictly on the formulated substantial questions of law. (Para 8 )

9. What is the legal consequence if a High Court reverses a decree in a second appeal without formulating a substantial question of law?

Such a judgment is rendered patently illegal. Reversal of a decree under Section 100 CPC is impermissible without the formulation of a substantial question of law and a decision thereon. (Para 8 )

ORDER :

1. Though this special leave petition is listed for admission, with the consent of the learned senior counsel for the petitioner, Sri V. Chitambaresh and learned counsel for the first respondent-caveator (the second respondent being the power of attorney holder of the petitioner herein), it is heard finally.

2. Leave granted.

3. The judgment of the High Court of Karnataka dated 06.01.2023 passed in Regular Second Appeal No. 5085 of 2011 is called into question in this appeal.

4. The main contention raised by learned senior counsel for the appellant, Sri V. Chitambaresh, is that the High Court has lost sight of the fact that it was dealing with a regular second appeal under Section 100 of the Code of Civil Procedure, 1908 (for short “CPC”) and disposed of the second appeal as if it was a regular first appeal. In other words, no substantial questions of law, which ought to have been framed and answered in the regular second appeal, were even raised in the impugned judgment, let alone answered. It was next submitted that the regular second appeal must be considered only on substantial questions of law, but the High Court has considered the said appeal as if it was a first appeal and gone into details of the evidence, etc. In the circumstances, learned senior counsel for the appellant submitted that the impugned judgment may be set aside and the matter may be remanded to the High Court for a fresh adjudication.

5. In this regard, learned senior counsel Sri V. Chitambaresh relied upon judgments of this Court in the case of C.A. Sulaiman vs. State Bank of Travancore, Alwayee , (2006) 6 SCC 392, State Bank of India vs. S.N. Goyal , (2008) 8 SCC 92 and Raghavendra Swamy Mutt vs. Uttaradi Mutt , (2016) 11 SCC 235.

6. Per contra, learned counsel appearing for the respondent supported the judgment and decision arrived at by the High Court on merits and contended that although the High Court raised no substantial question of law, yet, the reasoning and the conclusion of the High Court is justified. That in the facts of this case, there may be no interference with the impugned judgment and decree.

7. We have considered the contentions advanced at the Bar in light of the requirements of Section 100 of the CPC. It is trite that the exclusive jurisdiction of the High Court to deal with a regular second appeal is stipulated in Section 100 of the CPC, which grants power to the High Court to consider a regular Second Appeal only on a substantial question of law. This would clearly indicate that the First Appellate Court is the final court on questions of facts but only if there is any substantial question of law, a second appeal could be considered and raised by the High Court and such substantial questions of law ought to be answered. In fact, it is the practice and a mandatory requirement that at the time of admitting the regular second appeal, substantial questions of law must be framed, on the basis of which the arguments must be advanced and a decision given thereon. It is also permitted that once the arguments have been advanced, the court is at liberty to re-frame or frame fresh substantial questions of law and answer the same on hearing the learned counsel for the respective parties for immediate reference Section 100 of the CPC extracted as under:

“100. Second appeal:

(1) Save as otherwise expressly provided in the body of this Code or by any other law for the time being in force, an appeal shall lie to the High Court from every decree passed in appeal by any Court subordinate to the High Court, if the High Court is satisfied that the case involves a substantial question of law.

(2) An appeal may lie under this section from an appellate decree passed ex-parte.

(3) In an appeal under this section, the memorandum of appeal shall precisely state the substantial question of law involved in the appeal.

(4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.

(5) The appea

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