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AMICUS AI
Citation Codes
Neutral Citations
2008 INSC 176
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 100 of the Code of Civil Procedure
  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
2008 INSC 176
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 100 of the Code of Civil Procedure
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The respondent-plaintiffs filed a civil suit seeking (i) a declaration that Item 2 of the plaint schedule property was their absolute property, and (ii) a perpetual injunction restraining the respondents from obtaining possession of that item. The suit was dismissed by the trial court, and the dismissal was affirmed in first appeal. In second appeal, the High Court (Andhra Pradesh at Hyderabad) reversed those outcomes and decreed the suit by the impugned judgment.

Aggrieved by the High Court’s second-appeal judgment, the appellants approached the Supreme Court through a special leave petition, in which leave was granted. At the notice stage, the Supreme Court confined the scope to the question of whether the second appeal should be remitted to the High Court due to failure to formulate and decide substantial questions of law as required under Section 100 of the Code of Civil Procedure.

Legal Issues Presented

  1. Whether the High Court’s judgment in second appeal was liable to be set aside and the matter remitted because the High Court did not formulate substantial questions of law and decide the appeal on those questions as required by Section 100 of the Code of Civil Procedure.

Arguments of the Parties

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

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

After hearing counsel and examining the High Court’s second-appeal judgment, the Supreme Court held that the judgment was liable to be set aside on a short, procedural ground. The Court noted that it is “well settled” by a catena of its decisions that, before allowing a second appeal, the High Court must first formulate the substantial questions of law and then decide the appeal by considering those questions, consistent with Section 100 of the Code of Civil Procedure.

In the present case, it was admitted that the High Court formulated no substantial questions of law and yet allowed the second appeal. This procedural non-compliance vitiated the High Court’s decision. Accordingly, the Supreme Court set aside the impugned judgment and remitted the second appeal to the High Court for a fresh decision, directing that substantial questions of law be formulated first and the appeal then decided on merits.

The Supreme Court also clarified that it had not examined the merits of the underlying dispute, which were to be adjudicated by the High Court after complying with the Section 100 framework.

Holding and Implications

ALLOWED (IN PART/TO THE EXTENT INDICATED); HIGH COURT JUDGMENT SET ASIDE; MATTER REMITTED.

The impugned second-appeal judgment of the High Court was set aside, and the second appeal was restored to the High Court’s file for fresh disposal after formulating substantial questions of law and deciding the matter on merits in accordance with law. The High Court was requested to dispose of the second appeal expeditiously, preferably within six months from receipt of a copy of the order. There was no order as to costs.

The decision’s direct effect is procedural: it requires reconsideration by the High Court under Section 100 CPC. The opinion does not state any broader implications beyond remand and does not indicate that any new precedent was set.

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    Bokka Subba Rao v. Kukkala Balakrishna And Others

    Tarun Chatterjee, J.— Leave granted.

    2. At the time of issuing notice to the special leave petition, this Court confined notice as to why the second appeal should not be remitted to the High Court for failure to formulate and decide the substantial questions of law as required by Section 100 of the Code of Civil Procedure.

    3. A suit was filed by the respondent-plaintiffs for declaration that Item 2 of the plaint schedule property was their absolute property, and for a perpetual injunction, restraining the respondents from obtaining possession of the said item. The suit was dismissed, which was affirmed in appeal. However, by the impugned judgment of the High Court passed in second appeal, the suit was decreed. Feeling aggrieved by the aforesaid judgment of the High Court of Andhra Pradesh at Hyderabad, a special leave petition has been filed in respect of which leave has already been granted.

    4. Having heard the learned counsel for the parties and after examining the judgment of the High Court passed in the second appeal, we are of the view that the judgment in second appeal of the High Court is liable to be set aside on a very short question. It is now well settled by a catena of decisions of 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. In this case, admittedly no such substantial questions of law had been formulated and thereafter, the second appeal was allowed. That being the position, we set aside the judgment of the High Court passed in second appeal and remit the appeal back to the High Court for fresh decision after formulating the substantial questions of law and thereafter, to decide it on merits.

    5. For the reasons aforesaid, the judgment of the High Court is set aside. The second appeal is restored to its original file. The High Court is requested to dispose of the second appeal at an early date preferably within six months from the date of supply of a copy of this order to it. We make it clear that we have not gone into the merits of the appeal which shall be decided after formulating the substantial questions of law and then to decide the second appeal in accordance with law.

    6. The appeal is, therefore, allowed to the extent indicated above. There will be no order as to costs.

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    Comments

    Bokka Subba Rao v. Kukkala Balakrishna And Others
    (Feb 12, 2008)