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IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.  3406  OF 2011 (@ SPECIAL LEAVE PETITION(C)NO.24818 OF 2009)

B.M.NARAYANA GOWDA                                APPELLANT

                VERSUS

SHANTHAMMA(D) BY LRS AND ANR.                     RESPONDENTS

O R D E R

Leave granted.

We have heard learned counsel for the parties. The High Court, in the instant appeal, while deciding the  

First Appeal under  Section 96 of the Code of Civil Procedure has  

allowed the appeal and set aside the judgment and decree of the  

trial Court without properly examining the facts and law.  

This Court has observed in a number of cases that the  

first appeal is a valuable right of the appellant and therein all  

questions  of  fact  and  law  decided  by  trial  court  are  open  for  

reconsideration. In a  case where the High Court found the trial  

court  judgment  is  unsatisfactory  and  wanted  to  set  aside  the  

judgment, the High Court ought to have  carefully examined the facts  

and the law and given cogent reasons for setting aside the trial  

court judgment.  

The legal position in law is no longer res integra.  This  

Court had repeatedly said that in first appeal the High Court needs  

to decide questions of fact and law comprehensively by giving  full-

dressed hearing.  

Learned counsel for the appellant has drawn our attention

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to a judgment of this Court in  Sanjay Singh Rawat and Others Vs.  

National  Small  Industries  Corpn.  Ltd.  and  Others, (2005)  12  SCC  

p.146, the relevant portion of the judgment i.e. paras 3 and 4,  

reads as under :

“3. Having heard the learned counsel for the parties, we  are  satisfied  that  the  first  appeal  filed  in  the  High  Court did raise questions of fact and law which called for  a full-dressed hearing.  First appeal is a valuable right  of the appellant and therein all the questions of fact and  law  decided  by  the  trial  court  are  open  for  reconsideration.   In  our  opinion,  the  disposal  of  the  appeal by the High Court, in the manner in which it has  been done, is not satisfactory.

4. The appeal is allowed.  The impugned order of the  High Court dismissing the appeal summarily is set aside.  The appeal is remanded to the High Court for hearing and  decision afresh and in accordance with law.”   

Learned counsel for the appellant  also placed reliance on  

another  judgment  of  this  Court  in  H.K.N.Swami Vs.  Irshad  Basith  

(Dead)  by  Lrs., (2005)  10  SCC  p.243,  relevant  portion  of  the  

judgment i.e. para 3, reads as under :

“3. The first appeal has to be decided on facts as well as  on law.  In the first appeal parties have the right to be  heard both on questions of law as also on facts and the  first appellate court is required to address itself to all  issues  and  decide  the  case  by  giving  reasons.  Unfortunately, the High Court, in the present case has not  recorded any finding either on facts or on law.  Sitting  as the first appellate court it was the duty of the High  Court to deal with all the issues and the evidence led by  the parties before recording the finding regarding title.  The order of the High Court is cryptic and the same is  without assigning any reason.”    

Learned counsel for the appellant also placed reliance on  

yet   another    judgment  of this Court in Rama Pulp &   Papers  

Ltd. Vs.  Maruti N.Dhotre, (2005) 12 SCC p.186. In this judgment,  

this  Court observed  that in  first appeal  the High  Court has  to

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properly consider the evidence on record or for that matter even the  

arguments and the grounds raised in support of their case. We are  

constrained to observe that in the impugned judgment the High Court  

has not followed the settled legal position crystallized by a number  

of judgments of this Court.  Consequently, we set aside the impugned  

judgment and remit the matter to the Division Bench of the High  

Court for fresh consideration in accordance with law.  We request  

the  High  Court  to  dispose  of  the  appeal  as  expeditiously  as  

possible.  

We direct the parties to maintain status quo, as of today,  

till the disposal of the appeal by the High Court.

With  these  observations,  the  appeal  is  disposed  of,  

leaving the parties to bear their own costs.    

...................J. (DALVEER BHANDARI)

...................J. (DEEPAK VERMA)

NEW DELHI; 20TH APRIL, 2011