392.
(SC) 22-09-2022
A. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Proper test for determining whether a question of law raised in the case is substantial would be, whether it is of general public importance or whether it directly and substantially affects the rights of the parties and if so, whether it is either an open question in the sense that it is not finally settled by this Court -- If the question is settled by the highest court or the general principles to be applied in determining the question are well settled and there is a mere question of applying those principles or the question raised is palpably absurd, the question would not be a substantial question of law.
(Para 31)
B. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Question of law -- To be ‘substantial’, a question of law must be debatable, not previously settled by law of the land or a binding precedent, and must have a material bearing on the decision of the case, if answered either way, insofar as the rights of the parties before it are concerned -- To be a question of law "involving in the case" there must be first, a foundation for it laid in the pleadings and the question should emerge from the sustainable findings of fact arrived at by court of facts and it must be necessary to decide that question of law for a just and proper decision of the case -- An entirely new point raised for the first time before the High Court is not a question involved in the case unless it goes to the root of the matter -- It depend on the facts and circumstance of each case whether a question of law is a substantial one and involved in the case or not, the paramount overall consideration being the need for striking a judicious balance between the indispensable obligation to do justice at all stages and impelling necessity of avoiding prolongation in the life of any lis.
(Para 32)
C. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Question of law -- Principles relating to Section 100 of the CPC may be summarised:
(i) An inference of fact from the recitals or contents of a document is a question of fact. But the legal effect of the terms of a document is a question of law. Construction of a document involving the application of any principle of law, is also a question of law. Therefore, when there is misconstruction of a document or wrong application of a principle of law in construing a document, it gives rise to a question of law.
(ii) The High Court should be satisfied that the case involves a substantial question of law, and not a mere question of law. A question of law having a material bearing on the decision of the case (that is, a question, answer to which affects the rights of parties to the suit) will be a substantial question of law, if it is not covered by any specific provisions of law or settled legal principle emerging from binding precedents and involves a debatable legal issue. A substantial question of law will also arise in a contrary situation, where the legal position is clear, either on account of express provisions of law or binding precedents, but the court below has decided the matter, either ignoring or acting contrary to such legal principle. In the second type of cases, the substantial question of law arises not because the law is still debatable, but because the decision rendered on a material question, violates the settled position of law.
(iii) The general rule is that the High Court will not interfere with findings of facts arrived at by the courts below. But it is not an absolute rule. Some of the well-recognised exceptions are where (i) the courts below have ignored material evidence or acted on no evidence; (ii) the courts have drawn wrong inferences from proved facts by applying the law erroneously; or (iii) the courts have wrongly cast the burden of proof. When we refer to "decision based on no evidence", it not only refers to cases where there is a total dearth of evidence, but also refers to any case, where the evidence, taken as a whole, is not reasonably capable of supporting the finding.
(Para 33)
D. Code of Civil Procedure, 1908 (V of 1908), Section 96, 100 – First Appeal -- Regular Second Appeal -- Respondents in their Second Appeal before the High Court did not advert to any material evidence that had been ignored by the First Appellate Court -- Respondents also could not show that any wrong inference had been drawn by the First Appellate Court from proved facts by applying the law erroneously – Held, it cannot be said that the First Appellate Court acted on no evidence.
(Para 34)
E. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Right of appeal is not automatic -- Right of appeal is conferred by statute -- When statute confers a limited right of appeal restricted only to cases which involve substantial questions of law, it is not open to Supreme Court to sit in appeal over the factual findings arrived at by the First Appellate Court.
(Para 36)