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citation codes
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Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned in the excerpt, but a possible inference from the context)
  • Section 100, Code of Civil Procedure (CPC)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned in the excerpt, but a possible inference from the context)
  • Section 100, Code of Civil Procedure (CPC)
Smart Summary

Factual and Procedural Background

The respondent-landlord’s predecessor let the suit premises to the appellant-tenant in 1968. Claiming a bona fide need to start a “General Store” business and expressing disinterest in practising law, the landlord filed an eviction suit. Both the trial court and the first appellate authority dismissed the suit, holding that the landlord’s need was not genuine. The landlord then instituted a second appeal in the High Court under Section 100 of the Code of Civil Procedure (CPC). A learned Single Judge set aside the concurrent findings of fact and ordered eviction. Aggrieved, the tenant obtained special-leave and filed the present appeal before the Supreme Court.

Legal Issues Presented

  1. Whether the question framed by the High Court—“Whether the finding relating to bona fide requirement of the appellant of the courts below is vitiated due to irrelevant consideration and not under law?”—constituted a substantial question of law as required by Section 100 CPC.
  2. Whether the High Court exceeded its jurisdiction under Section 100 CPC by reversing concurrent findings of fact in the absence of any perversity, illegality, or substantial question of law.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Panchugopal Barua v. Umesh Chandra Goswami (1997) 4 SCC 713 Section 100 CPC confines second-appeal jurisdiction to cases involving a specifically formulated substantial question of law. Used to emphasize that the existence of a substantial question of law is the sine qua non for High Court interference in second appeals.
Kshitish Chandra Purkait v. Santosh Kumar Purkait (1997) 5 SCC 438 Duties of the High Court: formulate substantial questions at the outset; give notice to the opposite party; and refrain from deciding appeals without such formulation. Cited to show that failure to formulate/notify substantial questions renders the High Court’s decision illegal and violative of natural justice.

Court's Reasoning and Analysis

The Supreme Court observed that the “question of law” framed by the High Court was, in substance, not a question of law at all, much less a substantial one. Section 100 CPC, as amended in 1976, mandates the existence and prior formulation of a substantial question of law before the High Court can interfere in a second appeal. Relying on Panchugopal Barua and Kshitish Chandra Purkait, the Court held that:

  • The High Court overlooked the amended scope of Section 100 CPC and treated the matter as if it were a first appeal.
  • The concurrent findings of the trial court and first appellate authority were based on proper appreciation of evidence and displayed no perversity, illegality, or irregularity.
  • The High Court neither addressed nor answered the purported question it had framed, thereby acting beyond its jurisdiction and denying the tenant natural justice.

Because these procedural safeguards were ignored, the Supreme Court concluded that the High Court’s intervention was unjustified and unsustainable.

Holding and Implications

Appeal Allowed; High Court judgment dated 13-9-1996 set aside. Consequently, the landlord’s eviction suit stands dismissed and the tenant retains possession. The decision reaffirms the strict limitations imposed on High Court jurisdiction in second appeals under Section 100 CPC and underscores that concurrent factual findings cannot be disturbed absent a properly formulated substantial question of law.

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    Sheel Chand v. Prakash Chand .

    1. This appeal by special leave is directed against the judgment of the High Court dated 13-9-1996.

    2. The appellant is the tenant. The respondent is the landlord. The premises had been let out by the predecessor-in-interest of the present respondent-landlord in 1968. The suit for eviction was filed against the tenant by the respondent-landlord on various grounds including the ground that he required the suit premises for his bona fide personal need for starting his business. It was the case of the respondent-landlord that though he was an advocate, he wanted the suit shop for starting his business of a “General Store” as he did not intend to practise law. The suit was resisted. The trial court after framing issues and recording evidence came to the conclusion that the need of the landlord was not genuine or bona fide. The suit was dismissed. The landlord's appeal before the appellate authority failed and the finding recorded by the trial court to the effect that the need of the landlord was not bona fide or genuine was confirmed. The landlord thereupon filed a second appeal in the High Court. By the impugned order, the concurrent findings of fact were set aside by the learned Single Judge of the High Court in second appeal.

    3. We have heard learned counsel for the parties.

    4. The learned Single Judge while admitting the second appeal under Section 100 CPC framed the following question of law:

    “Whether the finding relating to bona fide requirement of the appellant of the courts below is vitiated due to irrelevant consideration and not under law?”

    5. In Panchugopal Barua v. Umesh Chandra Goswami (1997) 4 SCC 713 to which one of us (Anand, J.) was a party, explaining the scope of Section 100 CPC, it was observed:

    “7. A bare look at Section 100 CPC shows that the jurisdiction of the High Court to entertain a second appeal after the 1976 Amendment is confined only to such appeals as involve a substantial question of law, specifically set out in the memorandum of appeal and formulated by the High Court. Of course, the proviso to the section shows that nothing 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 formulated by it, if the court is satisfied that the case involves such a question. The proviso presupposes that the court shall indicate in its order the substantial question of law which it proposes to decide even if such substantial question of law was not earlier formulated by it. The existence of a ‘substantial question of law’ is thus the sine qua non for the exercise of the jurisdiction under the amended provisions of Section 100 CPC.”

    6. The above judgment was approved by a three-Judge Bench of this Court in Kshitish Chandra Purkait v. Santosh Kumar Purkait (1997) 5 SCC 438 wherein it was held:

    “10. We would only add that (a) it is the duty cast upon the High Court to formulate the substantial question of law involved in the case even at the initial stage; and (b) that in (exceptional) cases, at a later point of time, when the Court exercises its jurisdiction under the proviso to sub-section (5) of Section 100 CPC in formulating the substantial question of law, the opposite party should be put on notice thereon and should be given a fair or proper opportunity to meet the point. Proceeding to hear the appeal without formulating the substantial question of law involved in the appeal is illegal and is an abnegation or abdication of the duty cast on court; and even after the formulation of the substantial question of law, if a fair or proper opportunity is not afforded to the opposite side, it will amount to denial of natural justice. The above parameters within which the High Court has to exercise its jurisdiction under Section 100 CPC should always be borne in mind. We are sorry to state that the above aspects are seldom borne in mind in many cases and second appeals are entertained and/or disposed of, without conforming to the above discipline.”

    7. The question of law formulated by the learned Single Judge, noticed above, strictly speaking is not even a question of law, let alone a substantial question of law. The existence of a “substantial question of law” is the sine qua non for the exercise of jurisdiction by the High Court under the amended provisions of Section 100 CPC. It appears that the learned Single Judge overlooked the change brought about to Section 100 CPC by the amendment made in 1976. The High Court unjustifiably interfered with pure questions of fact while exercising jurisdiction under Section 100 CPC. It was not proper for the learned Single Judge to have reversed the concurrent findings of fact while exercising jurisdiction under Section 100 CPC. That apart, we find that the learned Single Judge did not even notice, let alone answer the question of law which had been formulated by it at the time of admission of the second appeal. There is no reference to the question of law in the impugned order and it appears that the High Court thought that it was dealing with a first appeal and not a second appeal under Section 100 CPC. The findings of fact recorded by the two courts below were based on proper appreciation of evidence and the material on the record. There was no perversity, illegality or irregularity in those findings. None has been brought to our notice by the learned counsel for the respondent either. The findings, therefore, did not require to be upset in a second appeal under Section 100 CPC. The judgment of the learned Single Judge, under the circumstances, cannot be sustained. This appeal consequently succeeds and is allowed. The judgment and order of the High Court dated 13-9-1996 is set aside. As a result, the eviction suit filed by the landlord shall stand dismissed. No costs.

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    Comments

    Sheel Chand v. Prakash Chand .
    (Sep 1, 1998)