BOODIREDDY CHANDRAIAH AND ORS. versus ARIGELA LAXMI AND ANR.

Citation: [2007] 9 S.C.R. 1061 · Decided: 17-09-2007 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Appeal(s) allowed

Judgment (excerpt)

BOODIREDDY CHANDRAIAH AND ORS. 
A 
v. 
ARIGELA LAXMI AND ANR. 
SEPTEMBER 17, 2007 
[DR. ARIJIT PASA Y AT AND D.K. JAIN, JJ.) 
B 
Code of Civil Procedure, 1908: 
s. JOO-Second appeal-Memorandum of appeal to state and High 
Court to formult;Jte substantial question of law-HELD: lnspite of several C 
decisions of Supreme Court highlighting requirement of formulating 
substantial question of law, if any, before adjudicating second appeal, th~ 
mandatory requirement is not being followed-Principles relating to s. 100 
summarised in the judgment-Matter remitted to High Court to formulate 
substantial question of law, if any, and to decide the second appeal D 
accordingly. 
Words and Phrases: 
Phrase "substantial question of law" and expression "substantial"-
Connotation of in the context of s.100 CPC. 
E 
In the instant appeal legality of the impugned judgment of the High Court 
in second appeal in terms of s. 100 CPC was questioned primarily on the 
ground that the appeal was allowed without formulating any substantial 
question of law. 
Allowing the appeal, the Court 
HELD:l.1. lnspite of several decisions of this Court highlighting the 
requirement of formulating the substantial question of law, if any, before 
adjudicating the second appeal, time and again, the mandatory requirement 
F 
is not being followed and, the High Courts have been issuing notices and G 
generally deciding the second appeals without adhering to the procedure 
prescribed under s.100 CPC. After the amendment a second appeal can be 
filed only if a substantial question of law is involved in the case. The 
memorandum of appeal must precisely state the substantial question of law 
1061 
H 
1062 
SUPREME COURT REPORTS 
[2007] 9 S.C.R. 
A involved and the High Court is obliged to satisfy itself regarding the existence 
~ 
~ 
of such a question. It has to be kept in mind that the right of appeal is neither 
a natural nor an inherent right attached to the litigation. Being a substantial 
statutory right, it has to be regulated in accordance with law in force at the 
relevant time. The conditions mentioned in the section must be strictly fulfilled 
B 
before a second appeal can be maintained and no court has the power to add 
or to enlarge those grounds. 
[Paras 4, 5 and 14] (1063-H; 1064-A, C, E; 1068-EJ 
1.2. The phrase "substantial question of law",- as occurring in the 
amended Section 100 of the CPC is not defined in the Code. The word 
c substantial, as qualifying "question of law", means - of having substance, 
essential, real, of sound worth, important or considerable. It is to be understood 
as something in contradistinction with - technical, of no substance or 
consequence, or academic merely. 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 
D either way, in so far as the rights of the parties before it are concerned. 
[Paras 8 and 1 l) (1065-H; 1066-A; 1067-B-C) 
1.3. The principles relating to s.100 CPC may be summarized thus: 
(i) An inference of fact from the recitals of contents of a document is a 
E question of fact. But the legal effect of the terms ofa document is a question 
of law. Construction of a document involving tJte 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 
F 
satisfied thatthe 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 
G 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 
H 
on a material question, violates the sett

Excerpt shown. Read the full judgment & AI analysis in Lexace.