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No facts to be determined in second appeal, no interim orders in second appeals before substantial question of law is framed.

Sankalp Tiwari ,
  23 January 2025       Share Bookmark

Court :
Supreme Court of India
Brief :

Citation :
To be updated upon official confirmation

Case Title:

U. Sudheera & Others v. C. Yashoda & Others

Date of Order:

January 17, 2025

Bench:

Justices J.B. Pardiwala and R. Mahadevan

Parties:

  • Appellants: U. Sudheera & Others
  • Respondents: C. Yashoda & Others

Subject

This judgment addresses the procedural requirements under Section 100 of the Civil Procedure Code, 1908 (CPC), concerning the formulation of substantial questions of law in second appeals. It also evaluates the evidentiary value of revenue records in property disputes and clarifies the scope of inherent judicial powers under Section 151 CPC.

Important Provisions

A.  Section 100, CPC: (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.] 

B.  Section 151, CPC: Nothing in this Code shall be deemed to limit or otherwise affect the inherent power of the Court to make such orders as may be necessary for the ends of justice or to prevent abuse of the process of the Court.

C.  Order XLI Rule 5, CPC: An amendment has been proposed so as to empower the appellate court to stay:-

(i) proceedings for final decree;

(ii) actual making of the final decree.

It is considered unnecessary to provide for stay of execution of the final decree, as such stay could be obtained in an appeal against the final decree.
The amendment has suggested itself by the Madras Amendment, which has been incorporated with certain modifications.

Overview

The case is about a property of 0.61 acres in Mangalam Village, Tirupati. The respondent (plaintiff) had filed a suit for permanent injunction against the appellants by stating that the revenue records validated her possession and implied ownership. The trial court passed the decree in her favor and granted the injunction.

The First Appellate Court reversed this decision, however, holding that possession alone without a declaration of title was not enough when the defendant contests ownership. It emphasized the need for establishing title before the plaintiff could obtain injunctive relief.

The plaintiff approached the Andhra Pradesh High Court in a second appeal. The High Court, granting interim relief by maintaining the status quo, could not formulate substantial questions of law as prescribed under Section 100 CPC. This procedural lapse became the central issue before the Supreme Court.

Issues Raised

  1. Compliance with Section 100 CPC: Was the High Court justified in granting interim relief without formulating substantial questions of law?
  2. Extent of Inherent Powers under Section 151 CPC: Can inherent powers be invoked to bypass mandatory procedural requirements?
  3. Role of Revenue Records: Are revenue entries adequate to establish ownership in disputes involving contested title?

Arguments Advanced by the Appellants

The appellants had challenged the interim order passed by the High Court, stating that it violated Section 100 CPC, which required the identification of substantial questions of law before allowing a second appeal. It was submitted that such a requirement was not merely formal but jurisdictional, as settled in Santosh Hazari v. Purushottam Tiwari.

The appellants contended that inherent powers under Section 151 CPC cannot override explicit statutory mandates. They cited Ram Chand and Sons Sugar Mills Pvt. Ltd. v. Kanhayalal Bhargava, which held that inherent powers must align with procedural laws and cannot contravene statutory provisions.

On revenue records, the appellants argued that such entries are basically fiscal and don't confer legal title, as held in Bhimabai Mahadeo Kambekar v. Arthur Import & Export Co. They were of the view that reliance on such records without a declaration of title vitiates the legal framework governing property rights.

Arguments Advanced by the Respondents

It should be noted that respondents argued against High Court interim relief by stressing the need for irreparable damage avoidance and for maintenance of the status quo. According to the argument, justice would not allow procedure technicality when substantive rights were involved.

They argued that the requirement under Section 100 CPC pertains to the final hearing and does not preclude the court from granting interim orders. The respondents maintained that revenue records, reflecting the plaintiff’s possession, were significant evidence in the absence of contrary proof.

Citing Alok Shanker Pandey v. Union of India, they emphasized that possession, coupled with long-standing enjoyment of the property, should suffice for injunctive relief.

Judgment Analysis

The Supreme Court scrutinized the procedural and substantive dimensions of the case. At the core of its analysis was the adherence to Section 100 CPC, which confines second appeals to substantial questions of law. The Court reiterated that this provision ensures that second appeals are not misused to re-examine factual determinations by lower courts.

The Court observed that the High Court’s failure to formulate substantial questions of law amounted to a jurisdictional error. Referring to Santosh Hazari v. Purushottam Tiwari, the Court underscored that such questions are indispensable for invoking jurisdiction under Section 100 CPC. The absence of this procedural step rendered the High Court’s interim order legally unsustainable.

On the scope of inherent powers under Section 151 CPC, the Court clarified that these powers must be exercised within the bounds of procedural laws. While inherent powers can address situations not covered by specific provisions, they cannot be used to circumvent explicit statutory requirements.

Regarding revenue records, the Court reiterated its position in Bhimabai Mahadeo Kambekar v. Arthur Import & Export Co. that such records are not definitive evidence of ownership. It emphasized that revenue entries serve administrative purposes and cannot replace the necessity of proving title in property disputes.

The Court further observed that injunctive relief based on possession alone is inappropriate where title is disputed. It upheld the appellate court's view that the plaintiff must seek a declaratory judgment to establish title before seeking injunctive relief.

Conclusion

The Supreme Court’s judgment reinforces the procedural rigor required under Section 100 CPC, emphasizing that substantial questions of law are essential for second appeals. It underscores that inherent judicial powers cannot override statutory mandates, maintaining a balance between procedural compliance and substantive justice.
The judgment also clarifies the very limited evidentiary value that revenue records possess, reiterating that mere possession alone is not sufficient to establish rights of ownership in disputes over property. This judgment acts as a precedence and satisfies procedural requirements while maintaining the integrity of property rights.
This elaborate critique is based on the procedural justice model and indicates that it is the judiciary that must bring about consistency and clarity in the interpretation of property laws.

 
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