AMICUS AI
Citation Codes
Neutral Citations
2006 INSC 952
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • this Code or by any other law for the time being in force
  • Section 100 CPC, after the 1976 Amendment
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 100 of the Code of Civil Procedure, 1908
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Cites
Cited by
Citation Codes
Neutral Citations
2006 INSC 952
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • this Code or by any other law for the time being in force
  • Section 100 CPC, after the 1976 Amendment
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 100 of the Code of Civil Procedure, 1908
Smart Summary

Factual and Procedural Background

The appellant challenged a judgment of a learned Single Judge of the Gujarat High Court. The High Court, while allowing a second appeal under Section 100 of the Code of Civil Procedure, 1908 (“the Code”), did so without first formulating any substantial question of law. The Supreme Court heard the appeal, noted the absence of appearance by the respondents, and proceeded to examine whether the High Court’s decision complied with the mandatory requirements of Section 100.

Legal Issues Presented

  1. Whether a High Court can allow a second appeal under Section 100 of the Code without formulating the substantial question(s) of law mandated by sub-sections (3) to (5) of that provision.
  2. Whether the proviso to Section 100(5) can be invoked in the absence of an initially formulated 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
Ishwar Dass Jain v. Sohan Lal (2000) 1 SCC 434 The High Court must formulate a substantial question of law before disturbing the first appellate court’s findings. Cited to show that reversing a lower-court judgment without such formulation is impermissible.
Roop Singh v. Ram Singh (2000) 3 SCC 708 Section 100 confines High Court jurisdiction to substantial questions of law; it cannot re-appreciate pure facts. Relied on to emphasise jurisdictional limits ignored by the High Court.
Kanhaiyalal v. Anupkumar (2003) 1 SCC 430 Reiterates the mandatory nature of formulating substantial questions of law. Referenced to reinforce the settled position.
Chadat Singh v. Bahadur Ram (2004) 6 SCC 359 Sub-sections (3)–(5) of Section 100 require precise statement and formulation of substantial questions before hearing. Used to explain procedural prerequisites unmet by the High Court.
Joseph Severance v. Benny Mathew (2005) 7 SCC 667 Continues the line of authority stressing mandatory compliance with Section 100. Cited as additional support for setting aside the impugned judgment.
Sasikumar v. Kunnath Chellappan Nair (2005) 12 SCC 588 Affirms the same principle regarding substantial questions of law in second appeals. Invoked to underline judicial consistency on the issue.
Jawala Singh v. Jagat Singh (2006) 10 SCC 148 Restates the limitations on High Court intervention absent a substantial question of law. Referenced to bolster the Court’s conclusion.
C.A. Sulaiman v. State Bank of Travancore (2006) 6 SCC 392 Reaffirms mandatory formulation of substantial questions in second appeals. Used cumulatively with other cases to demonstrate settled law.

Court's Reasoning and Analysis

After reproducing in full the text of Section 100 CPC, the Supreme Court observed:

  • The impugned High Court judgment contained no formulation of any substantial question of law, contravening sub-sections (3)–(5).
  • Without such formulation, the proviso to sub-section (5) is inapplicable because that proviso operates only where at least one substantial question of law has already been framed.
  • Multiple prior Supreme Court decisions—beginning with Ishwar Dass Jain and continuing through C.A. Sulaiman—have consistently held that failure to frame a substantial question of law is a jurisdictional defect rendering the High Court’s judgment unsustainable.

Applying these principles, the Court concluded that the High Court exceeded its jurisdiction and that its judgment must be set aside.

Holding and Implications

Holding: The Supreme Court set aside the Gujarat High Court’s judgment and remitted the matter to the High Court for fresh disposal in accordance with Section 100 CPC. The appeal was disposed of with no order as to costs.

Implications: The decision imposes no new legal doctrine but fortifies the mandatory procedural safeguard that a High Court must identify and formulate substantial questions of law before entertaining or deciding a second appeal. Non-compliance will result in the judgment being vacated and the case remanded.

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    Shah Mansukhlal Chhaganial (Dead) Through Lrs. v. Gohil Amarsing Govindbhai (Dead) Through Lrs. .

    Dr. Arijit Pasayat, J.— Leave granted.

    2. Challenge in this appeal is to the judgment rendered by a learned Single Judge of the Gujarat High Court. Second appeal filed by the respondents in terms of Section 100 of the Code of Civil Procedure, 1908 (in short “the Code”) was allowed. Though various questions were raised in support of the appeal, it was primarily highlighted that the second appeal was allowed without formulating any substantial question of law.

    3. There is no appearance on behalf of the respondents when the matter is called though learned counsel had entered appearance.

    4. “5. Section 100 of the Code deals with ‘second appeal’. The provision reads as follows:
    ‘100. (1) Save as otherwise expressly provided in the body of this Code or by any other law for the time being in force, an appeal shall lie to the High Court from every decree passed in appeal by any court subordinate to the High Court, if the High Court is satisfied that the case involves a substantial question of law.
    (2) An appeal may lie under this section from an appellate decree passed ex parte.
    (3) In an appeal under this section, the memorandum of appeal shall precisely state the substantial question of law involved in the appeal.
    (4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
    (5) The 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:
    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 formulated by it, if it is satisfied that the case involves such question.’
    6. A perusal of the impugned judgment passed by the High Court does not show that any substantial question of law has been formulated or that the second appeal was heard on a question, if any, so formulated. That being so, the judgment cannot be maintained.
    7. In Ishwar Dass Jain v. Sohan Lal (2000) 1 SCC 434 this Court in para 10 has stated thus:
    ‘10. 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 judgment of the first appellate court without doing so.’
    8. Yet again in Roop Singh v. Ram Singh (2000) 3 SCC 708 this Court has expressed that the jurisdiction of a High Court is confined to appeals involving substantial question of law. Para 7 of the said judgment reads:
    ‘7. It is to be reiterated that under Section 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 the High Court to interfere with pure questions of fact while exercising its jurisdiction under Section 100 CPC. That 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. Further, the fact-finding courts after appreciating the evidence held that the defendant entered into the possession of the premises as a batai, that is to say, as a tenant and his possession was permissive and there was no pleading or proof as to when it became adverse and hostile. These findings recorded by the two courts below were based on proper appreciation of evidence and the material on record and there was no perversity, illegality or irregularity in those findings. If the defendant got the possession of suit land as a lessee or under a batai agreement then from the permissive possession it is for him to establish by cogent and convincing evidence to show hostile animus and possession adverse to the knowledge of the real owner. Mere possession for a long time does not result in converting permissive possession into adverse possession. (Thakur Kishan Singh v. Arvind Kumar (1994) 6 SCC 591) Hence, the High Court ought not to have interfered with the findings of fact recorded by both the courts below.’
    The position has been reiterated in Kanhaiyalal v. Anupkumar (2003) 1 SCC 430.
    9. In Chadat Singh v. Bahadur Ram (2004) 6 SCC 359 it was observed thus:
    ‘6. In view of Section 100 of the Code the memorandum of appeal shall precisely state substantial question or questions involved in the appeal as required under sub-section (3) of Section 100. Where the High Court is satisfied that in any case any substantial question of law is involved, it shall formulate that question under sub-section (4) and the second appeal has to be heard on the question so formulated as stated in sub-section (5) of Section 100.’ ”

    5. The position was highlighted by this Court in Joseph Severance v. Benny Mathew (2005) 7 SCC 667; Sasikumar v. Kunnath Chellappan Nair (2005) 12 SCC 588; Jawala Singh v. Jagat Singh (2006) 10 SCC 148, JT (2006) 8 SC 483 and C.A Sulaiman v. State Bank of Travancore (2006) 6 SCC 392.

    6. The proviso to sub-section (5) of Section 100 is applicable only when any substantial question of law has already been 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 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.

    7. Under the circumstances, the impugned judgment is set aside, and the matter is remitted to the High Court for disposal in accordance with law.

    8. The appeal is disposed of in the aforesaid terms with no order as to costs.

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    Shah Mansukhlal Chhaganial (Dead) Through Lrs. v. Gohil Amarsing Govindbhai (Dead) Through Lrs. .
    (Dec 5, 2006)