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2014 Supreme(MP) 1689

IN THE HIGH COURT OF MADHYA PRADESH
F. M. Ibrahim Kalifulla, Abhay Manohar Sapre, JJ.
Vinod Kumar - Petitioner
Versus
Gangadhar – Respondent
Civil Appeal No. 9681 of 2014
Decided On : 13-10-2014

Advocates:
Advocate Appeared:
For the Petitioner: Ravindra Kumar, Manoj Saxena, Ram Krishna, Dr. Kailash Chand
For the Respondent: Rameshwar Prasad Goyal

The duty of the first Appellate Court under section 96 read with Order 41, Rule 31 of the Code of Civil Procedure, 1908 is to provide a full and fair consideration of evidence at the appellate stage, record findings supported by reasons on all issues arising in the case, and deal with all the issues and evidence led by the parties before recording its findings.

Headnote:

Appellate Court - Specific Performance of Contract - Code of Civil Procedure, 1908 - Section 96, Order 41 Rule 31 - AIR 1969 Kerala 316, (2001) 3 SCC 179, (2001) 4 SCC 756, (2005) 10 SCC 243, (2005) 12 SCC 303, (2010) 13 SCC 530, (2011) 12 SCC 174 - The court discussed the duty of the first Appellate Court under section 96 read with Order 41, Rule 31 of the Code of Civil Procedure, 1908 and referred to various judicial pronouncements to emphasize the need for a full and fair consideration of evidence at the appellate stage, conscious application of mind, and recording of findings supported by reasons on all issues arising in the case. The court highlighted the obligation of the High Court as the first Appellate Court to deal with all the issues and evidence led by the parties before recording its findings, and the right of the parties to be heard on questions of law and facts.

Fact of the Case:

The appellant filed a civil suit seeking specific performance of a contract for the purchase of a house. The trial Court dismissed the suit, and the High Court confirmed the dismissal, leading to the appellant's appeal to the Supreme Court.

Finding of the Court:

The Supreme Court found that the High Court failed to keep the principle in consideration and rendered a decision without dealing with the submissions urged by the appellant and without appreciating the evidence adduced by the parties. The Court held that the High Court's judgment did not uphold the appellant's valuable right to prosecute the first appeal on facts and law, causing prejudice to the appellant.

Issues: The issues involved the duty of the first Appellate Court under section 96 read with Order 41, Rule 31 of the Code of Civil Procedure, 1908, and the failure of the High Court to deal with the submissions urged by the appellant and appreciate the evidence adduced by the parties.

Ratio Decidendi: The duty of the first Appellate Court is to provide a full and fair consideration of evidence at the appellate stage, record findings supported by reasons on all issues arising in the case, and deal with all the issues and evidence led by the parties before recording its findings.

Final Decision: The appeal succeeded, and the impugned judgment was set aside. The case was remanded to the High Court for deciding the first appeal afresh, keeping in view the principle of law laid down by the Supreme Court. The High Court was directed to expedite the hearing and afford an opportunity of hearing to both parties.

JUDGMENT :

ABHAY MANOHAR SAPRE, J.

We have perused the Office Report dated 10-10-2014. It discloses that despite last opportunity granted to the respondent, he has not filed any counter affidavit till date. Today, when the matter was taken up for hearing, there was no representation for the respondent. Therefore, we proceed to decide the appeal on merits.

2. Leave granted.

3. This is a civil appeal filed by the plaintiff against the judgment/decree dated 21-3-2013 passed by the single Judge of the High Court of M. P., Indore Bench in First Appeal No. 173 of 1999, which in turn arises out of the judgment and decree dated 27-2-1999 passed by the second Additional District Judge, Mandsaur in Civil Suit No. 36A/97.

4. In order to appreciate the short issue involved in this appeal, it is necessary to state a few relevant facts :

5. The appellant (plaintiff) filed a civil suit in the Court of second Additional District Judge, Mandsore being Civil Suit No. 36A/97 against the respondent (defendant) for specific performance of the contract for purchase of house bearing No. 9, situated at Madhavganj Mandsaur (hereinafter referred to as "the suit house"). According to the appellant, the respondent was the owner of the suit house and he entered into a written agreement dated 5-1-1992 with the appellant to sell the suit house to the appellant for a total sum of Rs. 1,48,000/-. It was alleged in the plaint that the appellant, in terms of the agreement, offered/tendered Rs. 9,989/- to the respondent towards part payment of the sale consideration, but he declined to accept the amount and avoided to perform his part of the agreement. This led to the serving of notice by the appellant to the respondent calling upon him to perform his part of the agreement and execute the sale deed of the suit house in the appellant's favour. Since the respondent failed to ensure compliance of the legal notice, the appellant filed the aforementioned civil suit against the respondent seeking specific performance of the agreement in question. It was alleged that the appellant was ready and willing to perform his part of the agreement but it was respondent who failed to perform his part and hence this suit.

6. The respondent filed the written statement denying allegations made in the plaint. According to the respondent, there was no concluded agreement between the parties and in any event, the appellant having failed to perform his obligations, which were agreed upon in the alleged agreement, he was not entitled to seek enforcement of such agreement against the respondent in relation to the suit house.

7. Thereafter, the trial Court framed the issues. Parties then adduced evidence in support of their pleadings. The trial Court vide its judgment/decree dismissed the suit and declined to grant any relief to the appellant. Feeling aggrieved with the said judgment/decree, the appellant filed First Appeal No. 173 of 1999 under section 96 of the Code of Civil Procedure, 1908 in the High Court of M. P. at Indore Bench.

8. The learned Single Judge, by impugned judgment, dismissed the first appeal filed by the appellant and in consequence confirmed the judgment/decree passed by the trial Court, which had dismissed appellant's civil suit. It is against this confirmation of the dismissal of the suit by the High Court, the appellant felt aggrieved and filed this appeal.

9. Learned Counsel for the appellant while assailing the legality and correctness of the impugned judgment contended that the High Court without adverting to all the factual details and various grounds raised in the first appeal, disposed of the same in a cryptic manner. According to learned counsel, the High Court neither dealt with any issue nor appreciated the ocular and documentary evidence adduced by the parties nor examined the legal principles applicable to the issues arising in the case and nor rendered its findings on any contentious issues on which the appellant was non-suited by the trial Court though urged by

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