Created byFuzzy Cloud

Supreme Court of India

NARAYANAN RAJENDRAN & ANOTHERversusLEKSHMY SAROJINI & OTHERS

Citation
2009 INSC 180
Decided
12 February 2009
Disposal
Appeal(s) allowed

Holding

A High Court cannot interfere with the concurrent findings of fact in a second appeal under Section 100 CPC unless it first formulates a substantial question of law, which was not done here.

Summary

The plaintiffs sued for a share in a property claiming it was a sub‑tarward asset governed by the marumakkathayam customary law. The trial court and the first appellate court held that the property was not partible, the parties were governed by the makkathayam law and the plaintiffs failed to prove their claim. The High Court, on a second appeal under Section 100 of the CPC, reversed those findings, holding the parties were subject to the misravazhi (marumakkathayam) system and the property was sub‑tarward. The Supreme Court examined the scope of Section 100 after the 1976 amendment and held that a High Court may entertain a second appeal only when a substantial question of law is precisely framed; it cannot interfere with concurrent findings of fact. Since no such question was framed, the High Court acted beyond its jurisdiction. The Supreme Court set aside the High Court’s judgment, restored the lower courts’ findings, and allowed the appeal.

Issues considered

  • The High Court, in a second appeal under Section 100 CPC, may interfere with findings of fact of the lower courts without a substantial question of law.
  • Whether the appeal involved a substantial question of law that required formulation by the High Court.
  • Whether the High Court correctly framed a substantial question of law in the present case.

Legislation cited

Subjects

Section 100 CPCsecond appealsubstantial question of lawfindings of factcustomary lawmarumakkathayammisravazhi1976 amendmentcivil procedure

Judgment

                      [2009] 2 S.C.R. 71


         NARAYANAN RAJENDRAN & ANOTHER                             A_
                               v.
             LEKSHMY SAROJINI & OTHERS
               Civil Appeal No.742 Of 2001
                    FEBRUARY 12, 2009
                                                                   B
(DALVEER BHANDARI AND HARJIT SINGH BEDI, JJ.)
     Code Of Civil Procedure,.1908 :
       s. 100 - Second appeal - High Court setting aside con-
current findings of courts below - Held: Scope of interference     c
by High Court after 1976 Amendment is strictly confined to
cases involving substantial questions of law - It is reiterated
that High Court would not be justified in dealing with any sec-
ond appeal without first formulating substantial question of law
- In the instant case, High Court erred in interfering with the
                                                                   0
findings of facts arrived at by the trial court and affirmed by
first appellate court - Judgment of High Court set aside.
      The respondents-plaintiffs filed a suit contending that
the suit property was a subtarward property of defendant
 no. 1 and, therefore, the plaintiffs and defendants no. 1 to      E
3 being members of the subtarward, were entitled to 1/11
share each in the suit property under the customary law.
The stand of defendant no. 1 was that he had exclusive
right, title and possession over the property under a reg-
istered settlement deed executed by his grand parents              F
and, as such, the suit property was not partible. The trial
court dismissed the suit holding that the plaintiffs failed
to prove the suit property as subtarward property or that
the parties were marumakkathayee ezhavas and were
governed by the customary marumukkathayam law, on                  G
the other hand, the parties were governed by
makkathayam law. The first appellate court affirmed the
judgment. But the High Court in second appeal filed by
the plaintiffs held that parties to the suit being residents
                              71
    72       SUPREME COURT REPORTS               [2009] 2 S.C.R.


A of Kollam District and the property also being situated in
  the said district, they were following Misravazhi system         ~

  of inheritance which was essentially based on the prin-
  ciple of marumakkathayam system of inheritance with
  modifications recognized by judicial pronouncements.
B         In the appeal filed by the defendants it was con-
    tended for the appellants that the High Court erred in in-
    terfering with the concurrent findings of fact of the courts
    below, particularly, when the second appeal did not in-
    volve any substantial question of law. It was further con-
c   tended that the burden was on the plaintiffs, and they
    failed to prove that they were governed by the customary
    marumakkathayam law of inheritance.
         Allowing the appeal, the Court
D      HELD: 1.1 Section 100 of the Code of Civil Proce-
  dure, 1908 shows that the High Court can exercise its ju-
  risdiction thereunder only on the basis of substantial
  questions of law which are to be framed at the time of
  admission of the second appeal which has to be heard
E and decided only on the basis of such duly framed sub-
  stantial questions of law. The judgment under appeal
  shows that no such procedure was followed by the Single
  Judge. It is held by a catena of judgments by this Court,
  that the judgment rendered by High Court u/s 100 C.P.C.          +
F without  following the procedure laid down therein can-
  not be sustained.[para 33] [ 87-G, H; 88-A,B]
       Sheet Chand v. Prakash Chand (1998) 6 SCC 683;
  Kanai Lal Garari v. Murari Ganguly (1999) 6 SCC 35;
  Panchugopal Barua v. Umesh Chandra Goswami (1997) 4
G SCC 713; Santosh Hazari v. Purushottam Tiwari (2001) 3 SCC
  179; K. Raj and Anr. v. Muthamma (2001) 6 SCC 279; lshwar        ~
  Dass Jain v. Sohan Lal (2000) 1 SCC 434; Roop Singh v.
  Ram Singh (2000) 3 SCC 708; Santosh Hazari v. Purushottam
  Tiwari (deceased) by LRs. (2001) 3 SCC 179; Kamti Devi
H (Smt.) and Anr. v. Poshi Ram (2001) 5 SCC 311; Thiagarajan
                    NARAYANAN RAJENDRAN & ANOTHER V.                73
                       LEKSHMY SAROJINI & OTHERS

           v. Sri Venugopalaswamy B. Koil (2004) 5 SCC 762; Commis-       A
,...       sioner, Hindu Religious & Charitable Endowments v. P
           Shanmugama (2005) 9 SCC 232; State of Kera/a v. Mohd.
           Kunhi (2005) 10 SCC 139; Madhavan Nair v. Bhaskar Pillai
           (2005) 10 SCC 553; Harjeet Singh v. Amrik Singh (2005) 12
           SCC 270; H. P Pyarejan v. Dasappa (2006) 2 SCC 496;            B
           Chandrika Singh (Dead) by LRS & Another v. Sarjug Singh &
           Another (2006) 12 SCC 49; Chacko & Another v. Mahadevan
           (2007) 7 SCC 363; Bokka Subba Rao v. Kukkala Ba/akrishna
  ~        & Others (2008) 3 SCC 99; Nune Prasad & Others v. Nune
           Ramakrishna (2008) 8 SCC 258; Basayya/ Mathad v.               c
           Rudrayya S. Mathad & Others (2008) 3 SCC 120; Dharam
           Singh v. Kamai/ Singh & Others (2008) 9 SCC 759; Narendra
           Gopal Vidyarthi v. Rajat Vidyarthi, 2008 (16) SCALE 122; and
           UR. Virupakshaiah v. Sarvamma & Another 2009 (1) SCALE
           89 - relied on.
                                                                          D
       t
                 1.2 The analysis of cases decided by the Privy Coun-
           cil and this court prior to 1976 clearly indicated the scope
           of interference u/s 100 C.P.C. by this Court. Even prior to
           1976 amendment, the consistent position has been that
           the courts should not interfere with the concurrent find-      E
           ings of facts. [para 63] [ 97-F, G]
                Pratap Chunder v. Mohandranath (1890) /LR 17 Calcutta
           291 (PC.); Durga Chowdharani v. Jawahar Singh (1891) 18
           Cal 23 (PC); Ramratan Shukul v. Mussumat Nandu (1892)
           19 Cal 249 (252) (PC); Ram Gopal v. Shakshaton (1893) /LR      F
           20 Calcutta 93 (PC.); Rudr Prasad v. Baij Nath (1893) ILR 15
           Allahabad 367 - referred to.
                 1.3 After 1976 Amendment, the scope of s.100 has
           been drastically curtailed and narrowed down. The effect

 .         of the amendment mainly is: (i) The High Court would be
           justified in admitting the second appeal only when a sub-
           stantial question of law is involved; (ii) substantial ques-
                                                                          G



           tion of law to precisely state such question; (iii) a duty
           has been cast on the High Court to formulate substantial
                                                                          H
    74       SUPREME COURT REPORTS                [2009] 2 S.C.R.


A question of law before hearing the appeal; (iv) the ap-
  peal shall be heard only on that question. The High Court
  would not be justified in dealing with any second appeal
  without first formulating substantial question of law. [para
  64] [ 96-G, H; 97-A,B]
B        Kshitish. Chandra Purkait v. Santosh Kumar Purkait
    (1997) 5 SCC 438; Dnyanoba Bhaurao Shemade v. Maroti
    Bhaurao Mamor (1999) 2 SCC 471 - relied on.
        1.4 The rationale behind allowing a second appeal
c on a question of law is, that there ought to be some tribu-
  nal having a jurisdiction that will enable it to maintain, and,
  where necessary, re-establish, uniformity throughout the
  State on important legal issues, so that within the area of
  the State, the law, in so far as it is not enacted law, should
  be laid down, or capable of being laid down, by one court
0
  whose rulings will be binding on all courts, tribunals and
  authorities within the area over which it has jurisdiction.
  This is implicit in any legal system where the higher courts
  have authority to make binding decisions on question of
E law. [para 57] [ 94-G, H; 97-A]
        1.5 The fact that, in a series of cases, this Court was
  compelled to interfere was because the true legislative
  intendment and scope of s.100 C.P.C. have neither been
  appreciated nor applied. A class of judges while adminis-
F tering law honestly believe that, if they are satisfied that
  in any second appeal brought before them evidence has
  been grossly mis-appreciated either by the lower appel-
  late court or by both the courts below, it is their duty to
  interfere, because they seem to feel that a decree follow-
G ing upon a gross mis-appreciation of evidence involves
  injustice and it is the duty of the High Court to redress
  such injustice. It is reiterated that justice has to be admin-
  istered in accordance with law. When s.100 C.P.C. is criti-
  cally examined then, according to the legislative mandate,
H the interference by the High Court is permissible only in
                        NARAYANAN RAJENDRAN & ANOTHER V.                   75
\,
                           LEKSHMY SAROJINI & OTHERS

              cases involving substantial questions of law. [para 65-66]        A
     "        [ 97-F, G, H; 98-A]
                   Deity Pattabhiramaswamy v. S. Hanymayya and Others
              AIR 1959 SC 57; M. Ramappa v. M. Bojjappa (1963) SCR
              673; and Bholaram vs. Amirchand (1981) 2 SCC 414 - relied
              on.                                                               B

                    Luchman v. Puna (1889) 16 Calcutta 753 (P.C.)- referred
              to.
         -t         1.6 It is a matter of common experience in this Court
              that despite clear enunciation of law in a catena of cases        c
              of this court, in a large number of cases the High Courts
              u/s 100 CPC are disturbing the concurrent findings of fact
              without formulating the substantial question of law. Un-
              fortunately, several years are lost in the process. Litigants
              find it both extremely expensive and time consuming.
              This is one of the main reasons of delay in the adminis-          D
         t    tration of justice in civil matters. It is hoped that the High
              Courts would refrain from interfering with the concurrent
              findings of fact without formulating substantial question
              otlaw. [para 71-72] [ 98-F, G, H; 99-A, B]
                   Gurdev Kaur and Others v. Kaki and Others (2007) 1 SCC       E
              546 - relied on.
                    2. In the instant case, the High Court seriously erred
              in interfering with the findings of facts arrived at by the
              trial court and affirmed by the first appellate court. The
              judgment of the High Court is wholly unsustainable in law         F
              and is set aside. The findings of the trial court as upheld
              by the first appellate court are restored.[paras 68 & 73]
              [98-C, 99-C]
                   Radha Amma & Anr. Vs. C. Balaakrishnan Nair & Ors.           G
              (2006) 8 sec 546 - referred to.
                                 Case Law Reference
              (2006) 8 sec 546                    referred to    para 16
              (2001) 1 sec 546                    relied on      para 16        H
     76       SUPREME COURT REPORTS                 [2009] 2 S.C.R.


A (1889) 16 Calcutta 753 (P.C.)         referred to    para 19
     (1890) ILR 17 Calcutta 291 (P.C.) referred to     para 20
     (1891) 18 Cal 23 (PC)              referred to    para 21
     (1892) 19 Cal 249 (252) (PC)       referred to    para 21
B
     (1893) ILR 20 Calcutta 93 (P.C.)   referred       para 22
     (1893) ILR 15 Allahabad 367        referred to    para 23
     AIR 1959 SC 57                     relied on      para 24        ~·
                                                                           -..
                                                                             I
c (1963) SCR 673                        relied on      para 25
     (1981) 2 sec 414                   relied on      para 30
     (1997) 5 sec 438                   relied on      para 32

D (1999) 2 sec 471                      relied on      para 32
    · (1998) 6 sec 683                  relied on      para 33
     (1999) 6 sec 35                    relied on      para 34
     (1997) 4 sec 113                   relied on      para 34
E
     c2001) 3 sec 119                   relied on      para 34
     c2001) 6 sec 219                   relied on      para 34
     c2000) 1 sec 434                   relied on      para 35
                                                                      -+

F    c2000) 3 sec 108                   relied on      para 36
     (2001) 5 sec 311                   relied on      para 38
     (2004) s sec 762                   relied on      para 39
     (2005) 9 sec 232                   relied on      para 41
G
     (2005) 1o sec 139                  relied on      para 42
     (2005) 1o sec 553                  relied on      para 43
     (2005) 12 sec 210                  relied on      para 44
H
(




'.
\
    '

    \
                            NARAYANAN RAJENDRAN & ANOTHER V.
                               LEKSHMY SAROJINI & OTHERS
                                                                                  77


                  (2006) 2 sec 496                      relied on       para 45        A
        y
                  (2006) 12 sec 49                      relied on       para 46
'\                (2001) 1 sec 363                      relied on       para 47
                  (2008) 3 sec 99                       relied on       para 48        B
                  (2008) 8 sec 258                      relied on       para 49
                  c2008) 3 sec 120                      relied on       para 50
•           •     (2008) 9 sec 759                      relied on       para 51
                                                                                       c
                  2008 (16) SCALE 122                   relied on       para 52
                  2009 (1) SCALE 89                     relied on       para 53
                       CIVIL APPELLATE JURISDICTION : Civil Appeal No.742
                  of 2001                                                              D

            t          From the Judgement and Order dated 23.03.2000 of the
                  High Court of Kerala at Ernakulam in S.A. No 518 of 1990-C

                       C.S. Ranjan, E.M.S. Anam, for the Petitioned.
                                                                                       E
                       P. Krishnamoorthy, Romy Chacko, for the Respondent.

                       The Judgement of the Court was delivered by

            :.-        DALVEER BHANDARI, J.
                                                                                       F
                       1. This appeal is directed against the judgment dated 23rd
                  March, 2000 passed by the High Court of Kerala at Ernakulam
                  in Second Appeal No.518 of 1990.

                        2. The appellant is aggrieved by the order of the High Court


            ,     because the High Court in second appeal under section 100 of
                  Civil Procedure Code, 1908 reversed the concurrent findings
                  of the trial court and the first appellate court. According to the
                                                                                       G



                  appellant, the second appeal did not involve any question of
                  law much less any substantial question of law warranting inter-
                                                                                       H
    78       SUPREME COURT REPORTS                   [2009] 2 S.C.R.


A ference by the High Court under section 100 of the Code of
  Civil Procedure.                                                       :v
         3. The facts which are necessary to dispose of the appeal
    are recapitulated as under:
s        The appellants were defendants in the suit and the respon-
  dents were the plaintiffs. The plaintiffs filed a suit contending
  that the property in question is a subtarwad property of defen-
  dant no.1 and, therefore, the members of the subtarwad includ-
  ing the plaintiffs and defendants no.1 to 3 are entitled to 1/11     ~
c share each for each member of the subtarwad under the cus-
  tomary law. Defendant nos.1 to 3 and defendant nos.4 and 5
  who got assignment of the property for a valuable consideration
  from defendant nos.1 to 3 contended that the suit property is
  the personal property of defendant no.1 who has exclusive right
  of title and possession ever since 1103 M.E. under registered
0
  settlement deed executed by the grandfather and grandmother
  of defendant no.1, therefore, the suit property is not partible.     ,..
        4. Both the trial court as well as the first appellate court
  concurrently found that defendant no.1 has exclusive right and
E possession over the suit property and that the plaintiffs have
  failed to prove that the suit property is subtarwad property or
  that the parties are governed by the customary
  marumakkathayam law. The court further held that the burden is
  on the plaintiffs to prove the customary law is applicable which     -+
F the plaintiffs have failed to prove. On the other hand, several
  documents executed in the family of the parties prove that the
  parties are governed by makkathayam law.
        5. In the impugned judgment, the High Court on re-appre-
  ciation of the evidence in the case reversed the concurrent find-
G ings of the courts below and held that the suit property is the
  subtarwad property and the parties are governed by ezhava
  marumakkathayam customary law. According to the appellants,
  the findings of the High Court are wholly unsustainable. The
  burden of proof of the customary law is upon the person who
H alleges it. In the instant case, the respondents who were the
     NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                     79
      SAROJINI & OTHERS [DALVEER BHANDARI, J.]

plaintiffs before the trial court have clearly failed to prove the     A
customary law. On the other hand, the trial court and the first
appellate court on evidence found that the parties are following
makkathayam system and not marumakkathayam system. Un-
der the marumakkathayam law, every member is entitled to one
share in the property. The law of succession and inheritance           B
followed by the parties is makkathayam law.
     6. The trial court on the documents and evidence on record
framed the following issues:
     i.      Whether the suit is maintainable?                         c
      ii.    Whether the Munsiff's Court has pecuniary
             jurisdiction to try this suit?
      iii.   Whether the plaintiffs have paid proper court fees?
     iv.     Whether the plaint schedule property is the subtarwad     D
             property of plaintiffs and defendants 1 to 3?
     v.      Whether the plaintiffs are entitled to get share in the
             plaint schedule property and if so, what is the share
             due to the plaintiffs?
                                                                       E
     vi.     Whether defendants 4 and 5 have done any
             improvements in the property and if so what is the
             quantum thereof?

     vii.    Whether the plaintiffs are entitled to get any mesne
             profits and if so, what is its extent?                    F

     viii.   Reliefs and Costs?
Additional
     ix.     Are plaintiffs and defendants 1 to 3                      G
             Marumakkathayee Ezhavas? Are they governed by
             Marumakkathayam law?
     7. According to the trial court, issues no.(iv), (v) and (ix)
were main issues and they were decided together. The trial court
came to the conclusion that the plaintiffs have not proved that        H
    80        SUPREME COURT REPORTS                    [2009] 2 S.C.R.


A they are Marumakkathayee ezhavas. The defendants have sue-
  ceeded Jn showing that the parties are governed ·by                       ~-
  makkathayam law and that the plaint schedule property is not
  the subtarwad property as claimed by the plaintiffs. This neces-
  sarily follows that the plaintiffs are not entitled to claim partition
B and get any share in the plaint property. The issues, therefore,
  were found accordingly against the plaintiffs and in favour of the
  defendants holding that the plaint schedule property is not the
  subtarwad property of the plaintiffs and defendant nos.~ to 3
  and they are not Marumakkathayee ezhavas and hence the
  plaintiffs are not entitled to get any share in the said property.
                                                                           ...
c
           8. The first appellate court also comprehensively re-evalu-
   ated and re-examined the entire evidence on record and came
   to the conclusion that the evidence led by the side of the plain-
   tiffs is not convincing and reliable to uphold the case advanced
D by the plaintiffs and on the other hand, the evidence pointed out
   by the defendants would lead to the inference that the parties
   are makkathayee ezhavas. Therefore, there is no reason to in-
   terfere with the reasoning and findings of the lower court that
   the parties are governed by makkathayam system of inherit-
-· ance,    that there exists no subtarwad property of plaintiffs and
,_
   defendant nos.1 to 3 and as such the plaintiffs are not entitled
   to get any share in the suit property. The first appellate court
   upheld the judgment and decree passed by the trial court.
         9. The appellants aggrieved by the judgment of the trial
F court and the first appellate court preferred second appeal be-
    fore the High Court.
        10. In the impugned judgment, while setting aside the con-
  current findings of fact, the High Court observed that "parties to
  the suit being persons residing in Kallam District and the prop-
G
  erty over which they claim right also being situated in Kallam
  District, they were following misravazhi system of inheritance             )r


  which was essentially the principles of Marumakkathayam sys-
  tern of inheritance with modifications recognized by judicial pro-
  nouncement".
H
              NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                   81
               SAROJINI & OTHERS [DALVEER BHANDARI, J.]

               11. The entire basis of the aforesaid finding of the High A
'        Court is without any basis and unsustainable in law. It is aston-
         ishing how the person residing in a particular district would be
         governed by misravazhi system of inheritance. The customary.
         laws cannot be applied on the yardstick as adopted by the High
         Court.                                                            B
               12. The appellants submitted that it is the settled legal po-
         sition thatthe burden of proof was on the plaintiffs to prove that
    _j   they are governed by the customary law of marumakkathayam
         law of inheritance which the plaintiffs have failed to prove.
                                                                               c
               13. The appellants are seriously aggrieved by the judg-
         ment of the High Court. According to them, the High Court was
         in error in interfering with the findings of the fact of the courts
         below, particularly when the second appeal did not involve any
         question of law much less than any substantial question of law.
                                                                               D
    i"       14. The counsel for the plaintiffs placed reliance on the
         judgment of this court in Radha Amma & Another v. C.
         Ba/akrishnan Nair & Others (2006) 8 SCC 546 dealing with
         marumakkathayam law. The court observed as under:
                                                                               E
              "12. So far as the first submission is concerned it is not
              disputed before us that the question as to whether those
              items, namely, Items 8 to 16 belonged to the
              puthravakasam thavazhi, never arose for consideration in
              the suit or in the appeal. Defendant 2 never raised such
              a plea. No such issue was framed. Neither any evidence           F
                                                                                   \.
              was recorded on this aspect of the matter, nor were the
              courts called upon to record a finding on that question.
                                                                                   '
              This position is not disputed by the counsel appearing for
              the respondents. If such be the legal and factual position,
              we find no justification for the High Court to interfere in      G
              appeal and modify the decree of the courts below on a
              question which did not arise for its consideration .... "
              15. Similarly, in the instant case, the High Court set aside
         the concurrent findings of fact of the courts below on the ground
                                                                               H
    82         SUPREME COURT REPORTS                   [2009] 2 S.C.R.

                                                                                 '.:'
A that the parties to the suit being persons residing in Kallam dis-
  trict and the property over which they claim right also being situ-     '.\   'f
  ated in Kallam district, they were following misravazhi system
  of inheritance which was essentially the principles of
  marumakkathayam system of inheritance. This was not the case
B of either of the parties. No documents were filed. No evidence
  was led. No issues were framed by the trial court. Therefore,
  the High Court was clearly in error in setting aside the concur-
  rent findings of fact on virtually non-existent material. According
  to the appellants, the impugned judgment is liable to be set aside      ~

c and the findings of the trial court and as affirmed by the first
  appellate court are liable to be restored.
         16. In Gurdev Kaur and Others v. Kaki and Others
  (2007) 1 sec 546 in which one of us (Bhandari, J.) was party
  to that judgment crystallized the entire legal position but unfortu-
D nately even thereafter in the number of cases it has come to our
  notice that the law declared by this court is not fotlowed in a
  large number of cases by the High Courts. Once again we are
  making serious endeavour to recapitulate the legal position with
                                                                          "
  the fohd hope that the High Courts would keep in mind the legal
E position  before interfering in a case of concurrent findings of
  facts arrived at by the trial court and upheld by the first appellate
  court.
        17. Seytion 100 of the Code of Civil Procedure, 1908 (for·
  short, C.P.C.) corresponds to Section 584 of the old Civil Pro-         Jj

F cedure Code of 1882. The Section 100 (prior to 1976 amend-
  ment) reads as under:
         "100. Second appeal - (1) "Save where otherwise
         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
G
         Court from every decree passed in appeal by any Court
         subordinate to a High Court on any of the following
         grounds, namely :
         (a)   the decision being contrary to law or to some usage
H              having the force of law;
    NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                    83
     SAROJINI & OTHERS [DALVEER BHANDARI, J.]

     (b)    the decision having failed to determine some material     A
            issue of law or usage having the force of law;
     (c)    a substantial error or defect in the procedure provided
            by this Code or by any other law for the time being
            in force. which may possibly have produced error
            or defect in the decision of the case upon the merits.    8

      (2)   An appeal may lie under this section from an appellate
            decree passed ex parte."
     18. A reference of series of cases decided by the Privy
Council and this court would reveal true import, scope and ambit      C
of Section 100 C.P.C.
Cases decided prior tO 1976 amendment both by the Privy
Council and the Supreme Court dealing with the scope
of Section 100 C.P.C.
                                                                      D
     19. The Privy Council, in Luchman v. Puna [{1889) 16
Calcutta 753 {P.C.)], observed that a second appeal can lie only
on one or the other grounds specified in the present section.
   20. The Privy Council, in another case Pratap Chunderv.
Mohandranath [(1890) ILR 17 Calcutta 291 (P.C.)], the limita-         E
tion as to the power of the court imposed by sections 100 and
101 in a second appeal ought to be attended to, and an appel-
lant ought not to be allowed to question the finding of the first
appellate court upon a matter of fact.
                                                                      F
        21. In Durga Chowdharaniv. JawaharSingh (1891) 18
  Cal 23 (PC), the Privy Council held that the High Court had no
 jurisdiction to entertain a second appeal on the ground of erro-
. neous finding of fact, however gross or inexcusable the error
  may seem to be. The clear declaration of law was made in the        G
  said judgment as early as in 1891. This judgment was follow~d
  in the case of Ramratan Shukul v. Mussumat Nandu (1892)
  19 Cal 249 (252) (PC) and many others. The court observed:

      "It has now been conclusively settled that the third
      court ... cannot entertain an appeal upon question as to the    H
    84         SUPREME COURT REPORTS                     [2009] 2 S.C.R.


A        soundness of findings of fact by the second court, if there
         is evidence to be considered, the decision of the second
         court, however unsatisfactory it might be if examined, must
         stand final."

         22. In the case of Ram Gopal v. Shakshaton [(1893) ILR
8   20 Calcutta 93 (P.C.)], the court emphasized that a court of sec-
    ond appeal is not competent to entertain questions as to the
    soundness of a finding of facts by the courts below.

          23. The same Pfinciple has been reiterated in Rudr
c   Prasad v. Baij Nath [(1893) ILR 15 Allahabad 36i7]. The court
    observed that a judge to whom a memorandum of second ap-
    peal is presented for admission is entitled to consider whether
    any of the grounds specified in this section exist and apply to
    the case, and if they do not, to reject the appeal summarily.

D        24. Similarly, before amendment in 1976, this court also
    had an occasion to examine the scope of Section 100 C.P.C ..
    in Deity Pattabhiramaswamy v. S. Hanymayya and Others
   [AIR 1959 SC 57], the High Court of Madras set aside the find-
   ings of the District Judge, Guntur, while deciding the second
E appeal. This court observed that notwithstanding the clear and
   authoritative pronouncement of the Privy Council on the limits
   and the scope of the High Court's jurisdiction under section 100,
   Civil Procedure Code, "some learned Judges of the High Courts
   are disposing of Second Appeals as if they were first appeals.
F This introduces, apart fromthe fact that the High Court assumes
   and exercises a jurisdiction which it does not possess, a gam-
   bling element in the litigation and confusion in the mind of the
   litigant public. This case affords a typical illustration of such in-
   terference by a Judge of the High Court in excess of his juris-
., diction under Section 100, Civil Procedure Code. We have,
   therefore, no alternative but to set aside the judgment of the
                                                                            'f
   High Court Which had no jurisdiction to interfere in second ap-
   peal with the findings of fact arrived at by the first appellate court
   based upon an appreciation of the relevant evidence.

H        25. In M. Ramappa v. M. ·Bojjappa [(1963) SCR 673], the
          NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                    85
           SAROJINI & OTHERS [DALVEER BHANDARI, J.]

     Andhra Pradesh High Court interfered with the finding recorded         A
     by the Appellate Court which, in turn, had itself reversed the trial
     court's finding on the same question of fact. While setting aside
     the decree of the second Appellate Court, this court observed:
               "It may be that in some cases, the High Court dealing
          with the second appeal is inclined to take the view that          B
          what it regards to be justice or equity of the case has not
          been served by the findings of fact recorded by courts of
          fact, but on such occasions it is necessary to remember
          that what is administered in courts is justice according to
          law and considerations of fair play and equity however            c
          important they may be, must yield to clear and express
          provisions of the law. If in reaching its decisions in second
          appeals, the High Court contravenes the express
          provisions of section 100, it would inevitably introduce in
          such decisions an element of disconcerting unpredictability       D
          which is usually associated with gambling; and that is a
          reproach which judicial process must constantly and
          scrupulously endeavour to avoid."
           26. It may be pertinent to mention that as early as in 1890
     the Judicial Committee of the Privy Council stated that there is       E
     no jurisdiction to entertain a second appeal on the ground of an
     erroneous finding of fact, however, gross or inexcusable the error
     may seem to be and they added a note.of warning that no Court
     in India has power to add, or enlarge, the grounds specified in
     Section 100 of the Code of Civil Procedure.                            F
           27. Even before the amendment, interference under Sec-
     tion 100 C.P.C. was limited, whi'ch has now been further cur-
     tailed, which we would be dealing in cases decided by this court
     after the amendment.
                                                                            G
"!        28. We have given reference of a large number of cases
     decided by the Privy Council and this court to clearly under-
     stand the ambit and scope of Section 100 before amendment.

           29. The Amendment Act of 1976 has introduced drastic
                                                                            H
    86         SUPREME COURT REPORTS.                     [2009] 2 S.C.R.


A   changes in the scope and ambit of Section 100 C.P.C. A sec-
    ond appeal under Section 100 C. P.C. is now confined to cases
    where a question of law is involved and such question must be
    a substantial one. Section 100, as amended, reads as under:
         "100. Second Appeal:
B
         (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
c              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
D
               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
E              formulate that question.

         (5)   The appeal shall be heard on the question so
               formulated and the respondent shall, at the hearing
               of the appeal, be allowed to argue that the case
               does not involve such question:                               •
F
               Provided that nothing in this sub-section shall be
               deemed to take away or abridge the power of the
               court to hear, for reasons to be recorded, the appeal
               on any other substantial question of law, not
G              formulated by it, if it is satisfied that the case involves
               such question."                                               .,.
    Cases decided after 1976 amendment

      30. In Bholaram v. Amirchand(1981) 2 SCC 414 a three-
H Judge Bench of this court reiterated the statement of law. The
                    NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY 87
                     SAROJINI & OTHERS [DALVEER BHANDARI, J.]
               High Court, however, seems to have justified its interference in        A
      "-       second appeal mainly on the ground that the judgments of the
               courts below were perverse and were given in utter disregard
               of the important materials on the record particularly misconstrue-
               tion of the rent note. Even if we accept the main reason given by
               the High Court the utmost that could be said was that the find-         B
               ings of fact by the courts below were wrong or grossly inexcus-
               able but that by itself would not entitle the High Court to interfere
               in the absence of a clear error of law.
                      31. In Kshitish Chandra Purkait v. Santosh Kumar
               Purkait [(1997) 5 SCC 438], a three judge Bench of this court c
               held: (a) that the High Court should be satisfied that the case
               involved a substantial question of law and not mere question of
               law; (p) reasons for permitting the plea to be raised should also
               be recorded; (c) it has the duty to formulate the substantial ques-
               tions of law and to put the opposite party on notice and give fair D
               and proper opportunity to meet the point. The court also held
               that it is the duty cast upon the High Court to formulate substan-
               tial question of law involved in the case even at the initial stage.
                      32. This court had occasion to determine the same issue
                in Dnyanoba Bhaurao Shemade v. Maroti Bhaurao Marnor                   E
                (1999) 2 sec 471. 1:'he court stated.that the High.Court can
                exercise its jurisdiction under Section 100 C.P.C. only on the
                basis of substantial questions of law which are to be framed at
               ·the time of admission of the .. second appeal and the second
                appeal has to be heard and decided only on the basis of the            F
                such duly framed substantial questions of law.
                     33. A mere look at the said provision shows that the High
                Court can exercise its jurisdiction under Section 100 C.P.C. only
               on the basis of substantial questions of law which are to be
                                                                                       G
               framed at the time of admission of the second appeal and the
           ~
               .second appeal has to be heard and decided only on the basis
               of such duly framed substantial questions of law. The impugned
               judgment shows that no such procedure was followed by the
 \
--,
               learned Single Judge. It is held by a catena of judgments by this
                                                                                       H
    88        SUPREME COURT REPORTS                    [2009) 2 S.C.R.


A court, some of them being, Kshitish Chandra Purkait v.. Santosh
  Kumar Purkait (1997) 5 SCC 438 and Sheel Chand v. Prakash
  Chand (1998) 6 SCC 683 that the judgment rendered by the
  High Court under Section 100 C.P.C. without following the afore-
  said procedure cannot be sustained. On this short ground alone,
e this appeal Is requfred to be allowed.
         34. In Kanai l_al Garari v. Murari Ganguly (1999) 6 SCC
   35 the court has observed that it is mandatory to formulate the
   substantial question of law while entertaining the appeal in ab-
   sence of which the judgment is to be set aside. In Panchugopal
-C Barua v. Urnesh Chandra Goswami (1997) 4 SCC 713 and
   Santosh Hazari v. Purushottam Tiwari (2001) 3 SCC 179 the
   court reiterated the statement of law that the High Court cannot
   proceed to hear a second appeal without formulating the sub-
   stantial question of law. These judgments have been referred to
 D in the later judgment of K. Raj and Anr. v. Muthamma (2001) 6
 , SCC 279. A statement of law has been reiterated regarding the
   scope ano interference of the court in second appeal under
   Section 100 of the Code of Civil Procedure.
       35. In lshwar Dass Jain v. Sohan Lal (2000) 1 SCC
E 434, this court In para 10, has stated:
         "Now under Section 100 CPC, after the 1976 Amendment, ·
         it is essential for the High Court to formulate a substantial
         question of law and it is not permissible to reverse the
F        judgment of the first appellate court with.out doing so."
         36, Again in Roop Singh v. Ram Singh (2000) 3 SCC
    708, this eourt has expressed that the jurisdiction of a High Court
    is confined to appeals involving substantial question of law. Para
    7 of the 6t:iid judgment reads:
G
         "7. It is to be ralteri:1ted that under Sectign 100 CPC
         jurisdiction of the High Court to entertain a second appeal
         is confined only to such appeals which involve a substantial
         question of law and it does not confer any jurisdiction on
                                                                          I
         the High Court to interfere with pure questions of fact while    '
H
     NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                   89
      SAROJINI & OTHERS [DALVEER BHANDARI, J,]
     exercising its jurisdiction under Section 100 CPC. That A
     apart, at the time of disposing of the matter the High Court
     did not even notice the question of law formulated by it at
     the time of admission of the second appeal as there is no
     reference of it in the impugned judgment ... ,"
      37. Again in Santosh Hazarl v. Puru$hottam Tiwarl (de-         B
ceased) by LRs. (2001) 3 sec 179, another three-Judge
Bench of this court correctly delineated the scope of Section
100 C.P.C .. The court observed that an obligation is cast on the
appellant to precisely state in the memorandum of appeal the
substantial question of law involved In the appeal and which the     C
appellant proposes to urge before the court. In the said judg-
ment, it was further mentioned that the High Court must b~ sat-
isfied that a substantial question of law is involved in the case
and such question has then to be formulated by the High Court.
According to the court the word substantial, as qualifying "ques-    D
tion of law", means - of having substance, e:.:;$ential, real, of
sound worth, important or considerable. It is to be understood
as something in contradistinction with - technical, of no sub-
stance or consequence, or academic merely. However, it is clear
that the legislature has chosen not to qualify the scope of "sub-    E
stantial question of law" by suffixing the words "of general im-
portance" as has been done In many other provisions such as
Section 109 of the Code of Article 133(1) (a) of the Constitu-
tion.
      38. In Kamti Devi (Smt.) and Anr. v. Poshi Ram (2001)          F
5 sec 311 the court came to the conclusion that the finding
thus reached by the first appellate court cannot be interfered
with in a second appeal as no substantial question of law would
have flowed out of such a finding.
                                                                     G
      39. In Thiagarajan v. Sri Venugopalaswamy B. Koil
((2004) 5 SCC 762], this court has held that the High Court in its
jurisdiction under Section 100 C.P.C, was not justified in inter-
fering with the findings of fact. The court observed the\t to say
the least the approach of the High Court was not proper. It is the
                                                                     H
    90        SUPREME COURT REPORTS                    [2009] 2 S.C.R.


A obligation of the courts of law to further the clear intendment of
    the legislature and not frustrate it by excluding the same. This          "'
    court in a catena of decisions held that where findings of fact by
    the lower appellate Court are based on evidence, the High Court
    in second appeal cannot substitute its own findings on
B   reappreciation of evidence merely on the ground that another
    view was possible.
        40, In the same case, this court observed that in a case
  where special leave· petition was filed against a judgment of the        ..\..
  High Court interfering with findings of fact of the lower appellate
c court. This court observed that to say the least the approach of
  the High Court was not proper. It is the obligation of the courts
  of law. to further the clear intendment of the legislature and not
  frustrate it by excluding the same. This court further observed
  that the High Court in second appeal cannot substitute its own
D findings   on reappreciation of evidence merely on the ground
  that another view was possible.
           41: This court again reminded the High Courts in Com-
    missioner, Hindu Religious & Charitable Endowments v.
    P. Shanmugama [(2005) 9 SCC 232) that the High Court has
E   no jurisdiction in second appe~I to interfere with the finding of
    facts.
       42. Again, this court in the case of State of Kera/av. Mohd.
    Kunhi [(2005) 10 SCC 139) has reiterated the same principle                1'


F   that the High Court is not justified in interfering with the concur-
    rent findings of fact. This court observed that, in doing so, the
    High Court has gone beyond the scope of Section 100 of the
    Code of Civil Procedure.
        43. Again, in the case of Madhavan Nairv. Bhaskar Pillai
G [(2005) 1o sec 553), this court observed that the High Court
                                                                               )oo
  was not justified in interfering with the concurrent findings of fact.
  This court observed th.at it is well settled that even if the first
  appellate court commits an error in recording a finding of fact,
  that itself will not be a ground for the High Court to upset the
H same.
                      NARAYANAN RAJENDRAN &ANOTHER V. LEKSHMY                   91
                       SAROJINI & OTHERS [DALVEER BHANDARI, J.]

                        44. Again, in the case of Harjeet Singh v. Amrik Singh A
                  [(2005) 12 sec 270], this court with anguish has mentioned
                  that the High Court has no jurisdiction to interfere with the find-
                  ings of fact arrived at by the first appellate court. In this case,
                  the findings of the trial court and the lower appellate court re-
                  garding readiness and willingness to perform their part of con- B
                  tract was set aside by the High Court in its jurisdiction under
                  Section 100 C.P.C. This court, while setting aside the judgment
                  of the High Court, observed that the High Court was not justified
         ~
                  in interfering with the c?ncurrent findings of fact arrived at by the
                  courts below.
                                                                                     c
                        45. In the case of H.P. Pyarejan v. Dasappa [(2006) 2
                  sec 496] delivered on 6.2.2006, this court found serious infir-
                  mity in the judgment of the High Court. This court observed that
                  it suffers from the vice of exercise of jurisdiction which did not
                  vest in the High Court. Under Section 100 of the Code (as D
                  amended in 1976) the jurisdiction of the court to interfere with
         ..       the judgments of the courts below is confined ttJ hearing of sub-
                  stantial questions of law. Interference with the finding of fact by
                  the High Court is not warranted if it invokes reappreciation of
                  evidence. This court found that the impugned judgment of the E
.....'            High Court was vulnerable and needed to be set aside.
                       46. In Chandrika Singh (Dead) by LRS & Another v.
                  Sarjug Singh & Another (2006) 12 SCC 49, this court again
                  reiterated legal position that the High Court under section 100
                  CPC has limited jurisdiction. To deal with cases having a sub-     F
                  stantial question of law, this court observed as under:
                       "12 .... While exercising its jurisdiction under Section 100
                       of the Code of Civil Procedure, the High Court is required
                       to formulate a substantial question of law in relation to a
                                                                                     G
                       finding of fact. The High Court exercises a limited
             '\
                       jurisdiction in that behalf. Ordinarily uniess there exists a
                       sufficient and cogent reason, the findings of fact arrived at
                       by the courts below are binding on the High Court ... "

    >                  47. In Chacko & Another v. Mahadevan (2007) 7 SCC             H
    92        SUPREME COURT REPORTS                     [2009] 2 S.C.R.

                           \


A   363, while dealing with the jurisdiction of sections 96 and 100
    CPC, this court laid down as under:
         "6. It may be mentioned that in a first appeal filed under
         Section 96 CPC,.the appellate court can go into questions
         of fact, whereas in a second appeal filed under Section
B        100 CPC the High Court cannot interfere with the findings
         of fact of the first appellate court, and it is confined only to
         questions of law."
        48. In Bokka Subba Rao v. Kukkala Balakrishna & Oth-
C ers (2008) 3 sec 99, this court has clearly laid down that with-
  out formulating substantial questions of law under section 100
  CPC, the High Court cannot interfere with the findings of fact.
  The court laid down as under:
         "4. . .. It is now well settled by a catena of decisions of
D        this Court that the High Court in second appeal, before
         allowing the same, ought to have formulated the substantial
         questions of law and thereafter, to decide the same on
         consideration of such substantial questions of law .... "
         49. In Nune Prasad & Others v. Nune Ramakrishna
E   (2008) 8 SCC 258, this court laid down that the legislature has
    conferred a limited jurisdiction under section 100 CPC on the
    High Court to deal with the cases where substantial question of
    law is involveq.
F        50. In Basayya/ Mathad v. Rudrayya S. Mathad & Oth-
    ers (2008) 3 sec 120, this court has held that interference by
    the High Court without framing substantial question of law is
    clearly contrary to the mandate of section 100 CPC.
        51. lri Dharam Singh v. Karnail Singh & Others, (2008)
G 9 SCC 759, this court again crystallized the legal position in the
  following words:
         "13. The plea about proviso to Sub-section (5) of Section
         100 instead of supporting the stand of the respondent
         rather goes against them. The proviso is applicable only
H
                        NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                     93
                         SAROJINI & OTHERS [DALVEER BHANDARI, J.]

                         when any substantial question of law has already been             A
          ~
                         formulated and it empowers the High Court to hear, for
                         reasons to be recorded, the appeal on any other
                         substantial question of law. The expression ''on any other
                         substantial question of law" clearly shows that there must
                         be some substantial question of law already formulated            B
                         and then only another substantial question of law which
                         was not formulated earlier can be taken up by the High
                         Court for reasons to be recorded, if it is of the view that the
                         case involves such question."
              "
                          52. In Narendra Gopal Vidyarthi v. Rajat Vidyarthi, 2008         c
                    (16) SCALE 122, this court laid down that the High Court would
                    be justified to interfere under section 100 CPC only if it involves
                    substantial question of law.
                        53. In a recent judgment U.R. Virupakshaiah v.
                                                                                           D
                    Sarvamma & Another, 2009 (1) SCALE 89, this court has
                    once again crystallized the legal position after 1976 Amend-
                    ment of the CPC. The court observed as under:·
                         "The Code of Civil Procedure was amended in the year
  .                      1976 by reason of Code of Civil Procedure (Amendment)             E
----'-.                  Act, 1976. In terms of the said amendment, it is now
.....                    essential for the High Court to formulate a substantial
                         question of law. The judgments of the trial court and the
                         First Appellate Court can be interfered with only upon
                         formulation of a substantial question of law ... "                F
                       Legislative Background in the 54th Re~ort of the Law
                    Commission of India submitted in 1973:
                                                       1
                          54. The comprehensive 54 h Report of the Law Commis-
                    sion of India subrriitted to the Government of India in 1973 gives
                                                                                          G
                    historical background regarding ambit and scope of Section
              .,,

 ..   \
                    100 C.P.C. According to the said report, any rational system of
                    administration of civil law should recognize that litigation in civil
                    cases should have two hearings on facts - one by the trial court
                    and one by the court of appeal.
                                                                                          H
    94         SUPREME COURT REPORTS                    [2009] 2 S.C.R.

                       1
A        55. In the 54 h Report of the Law Commission of India, it is
  incorporated that it may be permissible to point out that a search             +
  for absolute truth in the administration of justice, however, laud-
  able, must in the very nature of things be put under some rea-
  sonable restraint. In other words, a search for truth has to be
B reconciled with the doctrine of finality. In judicial hierarchy final-
  ity is absolutely important because that gives certainty to the
  law. Even in the interest of litigants themselves it may not be
  unreasonable to draw a line in respect of the two different cat-
  egories of litigation where procedure will say at a certain stage
C that questions of fact have been decided by the lower courts
  and the matter should be allowed to rest where it lies without
  any further appeal. This may be somewhat harsh to an indjvidual
  litigant; but, in the larger interest of the administration of justice,
  this view seems to us to be juristically sound and pragmatically
  wise. It is in the light of this basic approach that we will now
0
  proceed to consider some of the cases which were decided
  more than a century ago.                                                  t-
         56. The question could perhaps be asked, why the litigant
  who wishes to have justice from the highest Court of the State
E should be denied the opportunity to do so, at least where there
  is a flaw in the conclusion on facts reached by the trial court or
  by the court of first appeal. The answer is obvious that even
  litigants have to be protected against too persistent a pursuit of
  their goal of perfectly satisfactory justice. An unqualified right of
F first appeal may be necessary for the satisfaction of the de-
  feated litigant; but a wide right of second appeal is more in the
  nature of a luxury.
        57. The rational behind allowing a second appeal on a
  question of law is, that there ought to be some tribunal having
G jurisdiction that will enable it to maintain, and, where necessary,
  re-establish, uniformity throughout the State on important legal
  issues, so that within the a:ea of the State, the law, in so far as it
  is not enacted law, should be laid down, or capable of being
  laid down, by one court whose rulings will be binding on all courts,
H tribunals and authorities within the area over which it has juris-
                    NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                     95
                     SAROJINI & OTHERS [DALVEER BHANDARI, J.]

              diction. This is implicit in any legal system where the higher courts    A
    .;        have authority to make binding decisions on questions of law.
                       58. It may be relevant to recall the statement of Douglas
                Payne on "Appeals on Questions of Fact" reported in (1958)
                Current Legal Problem 181. He obse01ed that the real justifica-
                tion for appeals on questions of this sort is not so much that the     B
                law laid down by the appeal court is likely to be superior to that
                laid down by a lower court as that there should be a final rule
                laid down which binds all future courts and so facilitates the pre-
              . diction of the law. In such a case the individual litigants are sac-
'    """
                rificed, with some justification, on the altar of law-making and
                must find such consolation as they can in the monument of a
                                                                                       c
                leading case.
               Historical Perspective:
                    59 .. The predecessors of the High Courts in their civil ap-       D
              pellate jurisdiction were the Sadar Divani Adalats. The right of
              appeal to the Sadar Divani Adalat was very wide initially, but
              came to be severely curtailed in the course of time. The
              "Conwallis Scheme", for example, made provision for two ap-
              peals in every category of cases, irrespective of its value. By          E
              1814, this was reduced to one appeal only. Only in cases of
              Rs.5,000 or over, there could be two appeals; one to the Pro-
              vincial Court of Appeal and second to the Sadar Divani Adalat.
         ~
              As Lord Hastings observed, -

                          "The facility of appeal is founded on a most laudable        F
                    principle of securing, by double and treble checks, the
                    proper decision of all suits, but the utopian idea, in its
                    attempt to prevent individual injury from a wrong decision,
                    has been productive of general injustice by withholding
                    redress, and general inconvenience, by perpetuating                G
         -,         litigation".

              Arrears:

                  60. The primary cause of the accumulation of arrears of
              second appeal in the High Court is the laxity with which second          H
    96         SUPREME COURT REPORTS                     [2009] 2 S.C.R.
                                                                                     .......
A   appeals are admitted without serious scrutiny of the provisions
    of Section 100 C.P.C. It is the bounden duty of the High Court to                 ~

    entertain second appeal within the ambit and scope of Section
                                                                                "'
    100 C.P.C.
          61. The question which is often asked is why should a liti-
B gant have the right of two appeals even on questions of law?
    The answer to this query is that in every State there are number
    of District Courts and courts in the District cannot be final arbi-
    ters on questions of law. If the law is to be uniformly interpreted
    and applied, questions of law must be decided by the highest             t'-
c   Court in the State whose decisions are binding on all subordi-
    nate courts.
    Rationale behind 12ermitting second a1212eal on guestion
    of law:
D         62. The rationale behind allowing a second appeal on a
    question of law is, that there ought to be some tribunal having a
                                                                             ~
    jurisdiction that will enable it to maintain, and, where necessary,
    re-establish, uniformity throughout the State on important legal
    issues, so that within the area of the State, the law, in so far as it
E   is not enacted law, should be laid down, or. capable of being
                                                                                       A
    laid down, by one court whose rulings will be binding on all courts,
    tribunals and authorities within the area over which it has juris-                 /
                                                                                           ?
    diction. This is implicit in any legal system where the higher courts
    have authority to make binding decisions on question of law.              ;..
F        63. The analysis of cases decided by the Privy Council
    and this court prior to 1976 clearly indicated the scope of inter-
    ference under Section 100 C.P.C. by this Court. Even prior to
    amendment, the consistent position has been that the courts
    should not interfere with the concurrent findings of facts.
G
         64. Now, after 1976 Amendment, the scope of Section 100
    has been drastically curtailed and narrowed down. The High               ~
                                                                                      /-
    Courts would have jurisdiction of interfering under Section 100
    C.P.C. only in a case where substantial questions of law are
    involved and those questions have been clearly formulated in
H
               NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                      97
                SAROJINI & OTHERS [DALVEER BHANDARI, J.]
"'        the memorandum of appeal. At the time of admission of the                A
     <(   second appeal, it is the bounden duty and obligation of the High
          Court to formulate substantial questions of law and then only
          the High Court is permitted to proceed with the case to decide
          those questions of law. The language used in the amended
          section specifically incorporates the words as "substantial ques-        B
          tion of law" which is indicative of the legislative intention. It must
          be clearly understood that the legislative intention was very clear
          that legislature never wanted second appeal to become "third
          trial on facts" or "one more dice in the gamble". The effect of the
          amendment mainly, according to the amended section, was:                 c
                (i)     The High Court would be justified in admitting the
                        second appeal only when a substantial question of
                        law is involved;
                (ii)    The substantial question of law to precisely state
                                                                                   D
                        such question;
                (iii)   A duty has been cast on the High Court to formulate
                        substantial question of law before hearing the appeal;
                (iv)    Another part of the Section is that the appeal shall
                        be heard only on that question.                            E

                65. The fact that, in a series of cases, this court was com-
          pelled to interfere was because the true legislative intendment
          and scope of Section 100 C.P.C. have neither been appreci-
          ated nor applied. A class of judges while administering law hon- F
          estly believe that, if they are satisfied that, in any second ap-
          peal brought before them evidence has been grossly
          misappreciated either by the lower appellate court or by both
          the courts below, it is their duty to interfere, because they seem
          to feel that a decree following upon a gross misappreciation of
                                                                              G
          evidence involves injustice and it is the duty of the High Court to
          redress such injustice. We would like to reiterate that the justice
          has to be administered in accordance with law.

               66. When Section 100 C.P.C. is critically examined then,
          according to the legislative mandate, the interference by the            H
    98                         SUPREME COURT REPORTS.   [2009) 2 S.C.R.


A   High Court is permissible only in cases involving substantial
    questions of law.
          67. The Judicial Committee of the Privy Council as early
    as in 1890 stated that there is no jurisdiction to entertain a sec-
    ond appeal on the ground of an erroneous finding of fact, how-
B   ever, gross or inexcusable the error may seem to be and they
    added a note of warning that no Court in India has power to add
    to, or enlarge, the grounds specified in Section 100.
           68. The High Court seriously erred in interfering with the     ,l.

c   findings of f~cts arrived at by the trial court and affirmed by the
    first appellate court.
    · I       -     rl ·   ,    .        ,   ,
          •   i..               .~   I

         69. The scope of interference by the High Court in second
    appeal under section 100 CPC after 1976 Amendment is strictly
    confined to cases involving substantial questions_ of law. The
D High Court would not be justified in dealing with any second
  . appeal without first formulating substantial question of law.
         70. The legislative intention has been clearly spelt out in a
    series of cases of this court. In Gurdev Kaur(supra), this court
    exhaustively dealt with the cases before and after 1976 Amend-
E   ment of CPC. This court cl~arly observed that the scope and
    ambit of section 100 CPC has been drastically changed after
    the amendment.
          71. It is a matter of common experience in this court that
F   despite   clear-enunciation of law in a catena of cases of this
    court, a large number of cases are brought to our notice where
   .the High Court under section 100 CPC are disturbing the r.on-
    current findings of fact without formulating the substantial ques-
    tion of law. We have cited only some cases and these cases
  · can be easily multiplied further to demonstrate that this court is
G
    compelled to interfere in a large number of cases decided by
    the High Courts under section .100 CPC. Eventually thjs court         r
    has to set aside these judgments of the High Courts and remit
   the cases to the respective High Courts for deciding them de
    nova after formulating substantial question of law. Unfortunately,
H
       NARAYANAN RAJENDRAN & ANOTHER V. LEKSHMY                  99
        SAROJINI & OTHERS [DALVEER BHANDARI, J.]

several years are lost in the process. Litigants find it both ex-      A
tremely expensive and time consuming. This is one of the main
reasons of delay in the administration.of justice in civil matters.
      72. We have once again undertaken this exercise and tried
to crystallize the legislative intention by referring to a number of
cases decided by this court with the hope that now the High            B
Courts would refrain from interfering with the concurrent find-
ings of fact without formulating substantial question of law.
     73. In this view of the clear legal position which emerges
by the legislative intention and ratio of the judgments of afore-      c
mentioned cases, the impugned judgment of the High Court is
wholly unsustainable in law and is accordingly set aside and
consequently the findings of the trial court as upheld by the first
appellate court are restored.
     74. Accordingly, the appeal is allowed. In the facts and cir-     D
cumstances of the case, the parties are directed to bear their
own costs.
R.P.                                             Appeal allowed.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Section 100 CPC"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.