Law Web: Whether it is mandatory for appellate court to comply O 41 R 31 of CPC while deciding first appeal?

It is clear from the above provisions and the decisions of this Court that

the judgment of the first appellate court has to set out points for determination,

record the decision thereon and give its own reasons. Even when the first

appellate court affirms the judgment of the trial court, it is required to comply

with the requirement of Order XLI Rule 31 and non-observance of this

requirement leads to infirmity in the judgment of the first appellate court. No

doubt, when the appellate court agrees with the views of the trial court on

evidence, it need not restate effect of evidence or reiterate reasons given by trial

court. Expression of a general agreement with the reasons given by the trial

court would ordinarily suffice.

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 1485 OF 2020

MALLURU MALLAPPA Vs KURUVATHAPPA

S. ABDUL NAZEER, J.

Dated:February 12, 2020.

1. Delay condoned. Leave granted.

2. This is the plaintiff’s appeal challenging the judgment and decree in RFA

No.1731 of 2006 dated 09.02.2012 passed by the High Court of Karnataka at

Bangalore, whereby the High Court has confirmed the judgment and decree

passed by the trial court in O.S. No. 32 of 2005 dated 09.06.2006.

3. The plaintiff filed the above suit against the respondents/defendants for

specific performance of the agreement to sell dated 30.3.2000. The agreement

provided that the sale was to be executed within three years from the date of the

agreement, subject to the defendants fulfilling certain obligations.

4. Defendant No.1 filed the written statement and the other defendants filed

a memo adopting the same as their written statement. Defendant No.1 admitted

the execution of the agreement to sell in favour of the plaintiff. However, the

defendant pleaded that the suit was barred by limitation. It was further

contended that plaintiff was not ready and willing to perform his part of the

contract.

5. Based upon the rival pleadings of the parties, the trial court framed the

following issues: -

“1.Whether the plaintiff proves that, the defendants 1 and 2 their

father have executed an agreement to sell on 30.3.2000 for

Rs.2,00,000/- in favour of the plaintiff after receiving

Rs.1,50,000/- as earnest money?

2. Whether the plaintiff proves that, he is always ready and

willing to perform his part of contract?

3. Whether the suit of the plaintiff is barred by limitation?

4. What order or decree?”

6. The plaintiff got himself examined as PW-1 and Ex. P-1, P1(a) to (c)

were marked in his evidence. The defendant No.1 was examined as DW1 and

three other witnesses were examined as DW-2 to 4. On appreciation of the

evidence on record, the trial court held that the suit was barred by time. It was

also held that the plaintiff was not ready and willing to perform his part of the

contract. The suit was accordingly dismissed.

7. As noticed above, the High Court has confirmed the said decree of the

trial court.

8. We have heard Shri S.N. Bhat, learned counsel for the appellant/plaintiff.

Though notice was served on the respondents, no one has entered appearance on

their behalf.

9. Shri Bhat, learned counsel, has made two-fold submissions. Firstly, he

submits that the High Court has passed a cryptic judgment without

reappreciating the evidence on record. It was argued that the first appeal filed

by the plaintiff under Section 96 of the Code of Civil Procedure, 1908 (for short

‘the CPC’) was a continuation of the suit and it was incumbent upon the High

Court to reassess the entire evidence on record. It was argued that the High

Court as an appellate court has failed to follow the guidelines provided under

Order XLI Rule 31 of the CPC while deciding the appeal. Secondly, it was

argued that the agreement to sell was dated 30.03.2000, providing for three

years’ time from the date of the agreement to complete the execution of the sale

deed. The suit was filed on 28.01.2005 which was well within time. Referring

to Article 54 of the Schedule to the Limitation Act, 1963, (for short ‘the

Limitation Act’) it was submitted that when a date is fixed for performance of

the contract, the period of limitation for filing the suit is three years from the

date fixed for the performance. It was further argued that there is no finding by

the High Court as to the readiness and willingness of the plaintiff to perform his

part of the contract.

10. We have carefully considered the submission of the learned counsel made

at the Bar and perused the materials placed on record.

11. Section 96 of the CPC provides for filing of an appeal from the decree

passed by any court exercising original jurisdiction to the court authorized to

hear the appeals from the decisions of such courts. In the instant case, the

appeal from the decree passed by the trial court lies to the High Court. The

expression ‘appeal’ has not been defined in the CPC. Black’s Law Dictionary

(7th Edn.) defines an appeal as “a proceeding undertaken to have a decision

reconsidered by bringing it to a higher authority.” It is a judicial examination of

the decision by a higher court of the decision of a subordinate court to rectify

any possible error in the order under appeal. The law provides the remedy of an

appeal because of the recognition that those manning the judicial tiers too

commit errors.

12. In Hari Shankar v. Rao Girdhari Lal Chowdhury1 it was held that a

right of appeal carries with it a right of re-hearing on law as well as on fact,

unless the statute conferring a right of appeal limits the re-hearing in some way

as has been done in second appeal arising under the CPC.

13. In Shankar Ramchandra Abhyankar v. Krishnaji Dattatreya Bapat2

it was held thus:

5. ……….. In the well known work of Story on

Constitution (of United States), Vol. 2, Article 1761, it is

stated that the essential criterion of appellate jurisdiction is

that it revises and corrects the proceedings in a cause

already instituted and does not create that cause. The

appellate jurisdiction may be exercised in a variety of forms

and, indeed, in any form in which the Legislature may

1 AIR 1963 SC 698

2 1969 (2) SCC 74

choose to prescribe. According to Article 1762 the most

usual modes of exercising appellate jurisdiction, at least

those which are most known in the United States, are by a

writ of error, or by an appeal, or by some process of

removal of a suit from an inferior tribunal. An appeal is a

process of civil law origin and removes a cause, entirely

subjecting the fact as well as the law, to a review and a

retrial…….”

14. It is a settled position of law that an appeal is a continuation of the

proceedings of the original court. Ordinarily, the appellate jurisdiction involves

a re-hearing on law as well as on fact and is invoked by an aggrieved person.

The first appeal is a valuable right of the appellant and therein all questions of

fact and law decided by the trial court are open for re-consideration. Therefore,

the first appellate court is required to address itself to all the issues and decide

the case by giving reasons. The court of first appeal must record its findings

only after dealing with all issues of law as well as fact and with the evidence,

oral as well as documentary, led by the parties. The judgment of the first

appellate court must display conscious application of mind and record findings

supported by reasons on all issues and contentions [see: Santosh Hazari v.

Purushottam Tiwari (Deceased) By Lrs.3, Madhukar and others v. Sangram

and Others4, B. M. Narayana Gowda v. Shanthamma (Dead) By Lrs. and

Another5, H. K. N. Swami v. Irshad Basith (Dead) By Lrs.6 and M/s. Sri

Raja Lakshmi Dyeing Works v. Rangaswamy Chettiar7].

3 (2001) 3 SCC 179

4 (2001) 4 SCC 756

5 (2011) 15 SCC 476

6 (2005) 10 SCC 243

7 (1980) 4 SCC 259

15. A first appeal under Section 96 of the CPC is entirely different from a

second appeal under Section 100. Section 100 expressly bars second appeal

unless a question of law is involved in a case and the question of law so

involved is substantial in nature.

16. Order XLI Rule 31 of the CPC provides the guidelines for the appellate

court to decide the matter. For ready reference Order XLI Rule 31 of the CPC

is as under: -

“31. Contents, date and signature of judgment.- The

judgment of the Appellate Court shall be in writing and shall

state—

(a) the points for determination;

(b) the decision thereon;

(c) the reasons for the decision; and

(d) where the decree appealed from is reversed or varied, the

relief to which the appellant is entitled;

and shall at the time it is pronounced be signed and dated by the

Judge or by the Judges concurring therein.”

17. In Vinod Kumar v. Gangadhar8 this Court has reiterated the principles

to be borne in mind while disposing of a first appeal, as under:-

“15. Again in B.V. Nagesh v. H.V. Sreenivasa Murthy [(2010) 13

SCC 530 : (2010) 4 SCC (Civ) 808] , this Court taking note of

all the earlier judgments of this Court reiterated the

aforementioned principle with these words: (SCC pp. 530-31,

paras 3-5)

“3. How the regular first appeal is to be disposed of by

the appellate court/High Court has been considered by

this Court in various decisions. Order 41 CPC deals

with appeals from original decrees. Among the various

rules, Rule 31 mandates that the judgment of the

appellate court shall state:

(a) the points for determination;

(b) the decision thereon;

8 (2015) 1 SCC 391

(d) where the decree appealed from is reversed or

varied, the relief to which the appellant is entitled.

4. The appellate court has jurisdiction to reverse or

affirm the findings of the trial court. The first appeal is

a valuable right of the parties and unless restricted by

law, the whole case is therein open for rehearing both

on questions of fact and law. The judgment of the

appellate court must, therefore, reflect its conscious

application of mind and record findings supported by

reasons, on all the issues arising along with the

contentions put forth, and pressed by the parties for

decision of the appellate court. Sitting as a court of first

appeal, it was the duty of the High Court to deal with

all the issues and the evidence led by the parties before

recording its findings. The first appeal is a valuable

right and the parties have a right to be heard both on

questions of law and on facts and the judgment in the

first appeal must address itself to all the issues of law

and fact and decide it by giving reasons in support of

the findings. (Vide Santosh Hazari v. Purushottam

Tiwari [(2001) 3 SCC 179 : (2001) 1 SCR 948] , SCC

p. 188, para 15 and Madhukar v. Sangram [(2001) 4

SCC 756] SCC p. 758, para 5.)”

18. In Shasidhar and Ors. v. Ashwani Uma Mathad and Anr (2015) 11 SCC 269, it was held

as under:-

“21. Being the first appellate court, it was, therefore, the

duty of the High Court to decide the first appeal keeping in

view the scope and powers conferred on it under Section 96

read with Order 41 Rule 31 of the Code mentioned above. It

was unfortunately not done, thereby, causing prejudice to

the appellants whose valuable right to prosecute the first

appeal on facts and law was adversely affected which, in

turn, deprived them of a hearing in the appeal in accordance

with law.”

19. It is clear from the above provisions and the decisions of this Court that