Created byFuzzy Cloud

Supreme Court of India

SIRAJUDHEENversusZEENATH & ORS

Citation
2023 INSC 173
Decided
27 February 2023
Disposal
Appeal(s) allowed

Holding

The High Court was not justified in remanding the suit for trial de novo; the order of remand is set aside.

Summary

The plaintiff‑respondent (Zeenath) appealed a High Court order that remanded her suit for cancellation of a sale deed and a prohibitory injunction back to the trial court for a fresh trial. The High Court had held that the evidence on record was insufficient and that material witnesses were not examined, thereby directing a de novo trial under Order XLI CPC. The Supreme Court examined the scope of Rules 23, 23‑A, 24, 27 and 33 of Order XLI CPC and held that the High Court neither identified any unsustainable findings of the trial court nor satisfied the statutory conditions for remand. Consequently, the Court found the remand unjustified, set aside the High Court order and restored the appeal for reconsideration by the High Court. The appeal was allowed.

Issues considered

  • Whether the High Court was justified in remanding the suit for trial de novo under Order XLI CPC.
  • Whether Rule 23 or Rule 23‑A of Order XLI CPC applies to the present case.
  • Whether the mere insufficiency of evidence on record warrants a remand under Rule 24.
  • Whether the High Court complied with the procedural requirements for ordering additional evidence under Rule 27.

Legislation cited

Subjects

CPCOrder XLIremandtrial de novoappellate jurisdictionevidencenon est factumpartnershipcivil suitdecree reversal

Judgment

                          [2023] 5 S.C.R. 1                               1


                          SIRAJUDHEEN                                     A
                                  v.
                         ZEENATH & ORS.
                   (Civil Appeal No. 1491 of 2023)
                        FEBRUARY 27, 2023                                 B
[DINESH MAHESHWARI AND SUDHANSHU DHULIA, JJ.]
      Code of Civil Procedure, 1908 – Order XLI Rule 23, 23A, 24,
33 – Remand for trial de novo by the High Court – Justified or not
– The two civil suits filed by the plaintiff-respondent No. 1 for
                                                                          C
cancellation of sale deed and for prohibitory injunction were
dismissed, the two other civil suits filed by her sisters seeking
partition of respective properties were decreed – These four
decisions were challenged by the respondent No.1 in the High Court
by way of four appeals – The instant appeal is directed against the
common judgment and order passed by the High Court, whereby               D
the appeal filed by the plaintiff-respondent no.1 against dismissal
of her suit for cancellation of a sale deed and for a prohibitory
injunction was disposed of with directions to the Trial Court to decide
the suit afresh after de novo trial, essentially with the observation
that the evidence necessary for proper determination of suit had
                                                                          E
not been brought on record - Whether the High Court was justified
in remanding the matter for trial de novo – On appeal, held: The
High Court has not adverted to the findings of the Trial Court
pertaining to the present case and has not specified as to how the
findings recorded by the Trial Court were unsustainable or
unjustified – The scope of remand in terms of Rule 23 of Order XLI        F
CPC is extremely limited and that provision is inapplicable because
the suit in question had not been disposed of on a preliminary point
– The remand in the present case cannot be held justified in terms
of Rule 23-A of Order XLI CPC because there is no reason
whatsoever available in the impugned judgment as to why and on
                                                                          G
what basis the decree was reversed by the High Court – The Court
has not specified as to what specific evidence was considered
necessary to enable it to pronounce judgment or for any substantial
cause – Merely because the High Court could not reach to a
conclusion on preponderance of probabilities, the evidence on
record could not have been treated as insufficient so as to not           H
                                  1
2            SUPREME COURT REPORTS                      [2023] 5 S.C.R.


A   pronounce the judgment in terms of Rule 24 of Order XLI CPC –
    Further, merely because a particular evidence which ought to have
    been adduced but had not been adduced, the Appellate Court cannot
    adopt the soft course of remanding the matter – The remand of the
    suit for trial de novo cannot be considered justified in the present
    case from any standpoint.
B
          Allowing the appeal, the Court
         Held: 1. Real question calling for determination in this
    appeal is as to whether the High Court has been justified in
    remanding the matter for trial de novo? [Para 8.1][13-D]
C         2. It could at once be noticed that in terms of Rule 33 of
    Order XLI CPC, the Appellate Court is empowered to pass any
    decree and to make any order which ought to have been passed
    or made; and which may be considered requisite in a case. While
    the said Rule 33 prescribes general powers of the Court of appeal,
D   the specific powers of remand are prescribed in Rules 23 and
    23-A of Order XLI CPC. Hence, for the purpose of the case at
    hand, reference to aforesaid Rule 33 remains inapposite. [Para
    10][16-H; 17-A]
          3. With respect, what turns on the observations in the
E   impugned judgment is that the High Court was unable to arrive
    at a conclusion on the basis of the material on record. However,
    fact of the matter remains that on the basis of the same material
    on record, the Trial Court had indeed arrived at a definite
    conclusion that the plaintiff had failed to establish her case and
    hence, the suit was liable to be dismissed. As indicated
F   hereinabove, the High Court has not at all referred to the findings
    of the Trial Court and it is difficult to find from the judgment
    impugned as to why at all those findings of the Trial Court were
    not to be sustained or the decree was required to be reversed.
    [Para 11.1][17-E-F]
G         4. The scope of remand in terms of Rule 23 of Order XLI
    CPC is extremely limited and that provision is inapplicable
    because the suit in question had not been disposed of on a
    preliminary point. The remand in the present case could only be
    correlated with Rule 23-A of Order XLI CPC and for its
H
              SIRAJUDHEEN v. ZEENATH & ORS.                           3


applicability, the necessary requirements are that “the decree is     A
reversed in appeal and a re-trial is considered necessary”. As
noticed hereinabove, there is no reason whatsoever available in
the impugned judgment as to why and on what basis the decree
was reversed by the High Court. Obviously, the reversal has to
be based on cogent reasons and for that matter, adverting to and
                                                                      B
dealing with the reasons that had prevailed with the Trial Court
remains a sine qua non. Thus, remand in the present case cannot
be held justified even in terms of Rule 23-A of Order XLI CPC.
[Para 11.2]P17-G; 18-A-C]
       5. None of the parties have sought any permission to
adduce evidence nor the High Court has specified as to what           C
specific evidence was considered necessary to enable it to
pronounce judgment or for any substantial cause. It does not
appear from the judgment of the High Court if the plaintiff/
respondent No. 1, ever projected that the Trial Court did not
allow her to produce any evidence that was sought to be produced.     D
It is also not borne out if any of the parties at all made out any
case for production of additional documents or oral evidence with
reference to the applicable principles. Hence, the general
observations of the High Court cannot be correlated with Rule
27(1) either. [Para 12][18-C-E]
                                                                      E
       6. Trial Court had returned its findings on the basis of
evidence on record. Whether those findings are sustainable or
not is a matter entirely different and the High Court may examine
the same but merely because the High Court could not reach to
a conclusion on preponderance of probabilities, the evidence on
record could not have been treated as insufficient so as to not       F
pronounce the judgment in terms of Rule 24 of Order XLI CPC.
[Para 13][18-F-G]
      7. Merely because a particular evidence which ought to
have been adduced but had not been adduced, the Appellate Court
cannot adopt the soft course of remanding the matter. [Para           G
14][19-A-B]
      8. Suffice it would be to sum up that for a few tentative
observations about certain circumstances existing in favour of
the plaintiff and certain other circumstances existing in favour of
                                                                      H
4            SUPREME COURT REPORTS                           [2023] 5 S.C.R.


A   the defendants and then, with another observation that plaintiff
    was a vital witness, the High Court was not justified in remanding
    the matter for trial de novo without recording any finding if the
    plaintiff was prevented from examining herself or from adducing
    any other evidence as also without explaining as to on what ground
    the decree was being reversed. [Para 15][19-C-D]
B
          Municipal Corporation, Hyderabad v. Sunder Singh
          (2008) 8 SCC 485 : [2008] 9 SCR 635 – relied on.
          Sanjay Kumar Singh v. State of Jharkhand (2022) 7
          SCC 247 – held inapplicable.
C                            Case Law Reference
    [2008] 9 SCR 635                  relied on                 Para 6
          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1491
    of 2023.
D         From the Judgment and Order dated 28.06.2019 of the High Court
    of Kerala at Ernakulam in RFA No. 247 of 2014.
          Mahabir Singh, Sr. Adv., Zulfiker Ali P. S., Sajeeb S., Ms. Lakshmi
    Sree P., M/s SRM Law Associates, Advs. for the Appellant.
          James P. Thomas, Abid Ali Beeran P., Advs. for the Respondents.
E
          The Judgment of the Court was delivered by
          DINESH MAHESHWARI, J.
          Leave granted.

F          2. This appeal is directed against the common judgment and order
    dated 28.06.2019, passed by the High Court of Kerala at Ernakulam
    insofar as relating to RFA No. 247 of 2014, whereby the appeal filed by
    the plaintiff (respondent No.1 herein) against dismissal of her suit for
    cancellation of a sale deed and for prohibitory injunction was disposed
    of with directions to the Trial Court to decide the suit afresh after de
G   novo trial, essentially with the observations that the evidence necessary
    for proper determination of the suit had not been brought on record.
            3. In the impugned common judgment and order dated 28.06.2019,
    the High Court has decided four appeals arising out of four different
    civil suits but concerning the same contesting parties and involving inter-
H
                SIRAJUDHEEN v. ZEENATH & ORS.                                   5
                   [DINESH MAHESHWARI, J.]

related issues. Though, the present appeal relates only to one of those         A
appeals in the High Court, being RFA No. 247 of 2014 that arose from
OS No. 293 of 2012 in the Court of Subordinate Judge, Karunagapally
(originally OS No. 390 of 2006 in the Court of Subordinate Judge, Kollam)
but, for a proper comprehension of the facts, a brief reference to the
subject-matter of the said four civil suits and findings therein shall be
                                                                                B
apposite. The relevant factual and background aspects could thus be
noticed, in brief, as follows:
      3.1. The respondent No. 1 filed the subject civil suit (OS No. 293
of 2012) against the present appellant as defendant No. 1 and other
respondents, her sisters, as defendant Nos. 2 to 5, for setting asidea sale
deed bearing No. 285 of 2006 dated 15.03.2006, registered in the Office         C
ofSubRegistrar,Karunagapally.
       3.2. The suit schedule property, consisting of 54 Ares and 90 Sq.
meters of land and the cinema theatre building thereupon, comprisedin
Block No. 5, Resurvey No. 551/3 ofAdinadu Village, Kulashekharapuram
Panchayat, Karunagapally Taluk, Kollam District, was originally owned           D
by father of the respondents; and after his demise, the respondents and
their mother executed a partition deed bearing No. 291 of 2003, whereby
the suit schedule property was kept in joint possession andenjoyment of
the respondents. A partnership deed was also executed amongst the
respondents for running of the said cinema theatre and the husband of           E
respondent No. 1 was managing the cinema theatre named ‘Tharangam
theatre’ on behalf of the partners.
        3.3. As per the case of plaintiff-respondent No. 1, on 15.03.2006,
the respective husbands of respondent Nos. 3 and 5asked her to reach
the Office of the Sub Registrar, Karunagapally for execution of a security      F
bond in favour of a film distributor; and though she made a request for
postponing the execution of such document because her husband wasout
of station, the husbands of respondent Nos. 3 and 5 insisted that the said
security was to be executed on that particular day itself orelse, functioning
of the cinema theatre would be affected. As the respondent No. 1 had
utmost faith and belief in them, she reached the Sub Registrar’s Office,        G
and put her signatures on the document as required by them. On
15.09.2006, when respondent No. 1 enquired about the accounts of
cinema theatre from respondent No. 5,it was informed that her share in
the said property had already been sold. On hearing the same, the
respondent No. 1 rushed to the Office of the Sub Registrar for getting a        H
6                 SUPREME COURT REPORTS                       [2023] 5 S.C.R.


A   copy of the document executed on 15.03.2006 and, on going through the
    same, she realized that she was made to sign on a sale deed and not on
    a security document as told to her earlier. Further, no consideration was
    received by her and hence, the said sale deed was void and non est.
          3.4. The suit aforesaid was duly contested by the defendants.
B   After framing of issues, the parties adduced documentary and oral
    evidence where, on behalf of the plaintiff-respondent No. 1, her husband
    was examined as PW-1 whereas a relative of her husbandwas examined
    as PW-2; and on the other hand, in defendants’ evidence, the present
    appellant was examined as DW-1 whereas the husband of respondent
    No. 4was examined as DW-2.
C
           3.5. Apart from the above civil suit bearing OS No. 293 of 2012,
    the plaintiff-respondent No. 1filed another civil suit for prohibitory
    injunction, which was registered as OS No. 238 of 2012.Both these civil
    suits, being OS No. 293 of 2012 and OS No. 238 of 2012 were decided
    together by the Trial Court in its common judgment dated 28.01.2014.
D   After examining the evidence on record, the Trial Court rejected the
    case of the plaintiff-respondent No. 1 with the findings, inter alia, that
    the circumstances placed on record did not probabilise the case that by
    defrauding her, the husbands of her sisters got executed the sale document
    (Ex. A-1) while making her believe that it were a security document for
E   getting new films. The Trial Court also found that no steps were taken
    by the plaintiff-respondent No. 1 to examine the Sub Registrar who had
    registered the sale deed whereupon she had put her signatures on being
    allegedly made to believe it to be a security document; and she failed to
    discharge the burden of proof in terms of Section 103 of the Indian
    Evidence Act, 18721. Without much elaboration, we may take note of
F   the relevant findings of the Trial Court as under: -
              “22…..So the aforesaid circumstance never probabalise the case
              advanced on part of plaintiff that by defrauding her the husbands
              of D3 and D5 succeeded to execute Ext.A1 by making her believe
              that it was a security document for getting new films from a
G             distributor as claimed….
                      ***                      ***               ***



    1
H       Hereinafter referred to as ‘the Evidence Act’.
                SIRAJUDHEEN v. ZEENATH & ORS.                                   7
                   [DINESH MAHESHWARI, J.]

      24. Though plaintiff is having the case that Ext.A1 is the result of      A
      fraud, undue influence and coercion etc exerted upon her by the
      persons whom she was having confidence, no steps has been
      taken on the part of the plaintiff to examine the registrar who
      registered Ext.A1 sale deed wherein plaintiff has put her signature
      being it as a security document for getting new films as made
                                                                                B
      believe on the par to D3 and D5, though burden of proof is upon
      her as per Section 103 of Indian Evidence Act. So from the
      available evidence in my opinion the Ext. A1 sale deed cannot be
      set aside since it was voluntarily executed by the plaintiff in favour
      of D1. Hence I find these issues against the plaintiff.”
       3.6. In view of the above, the Trial Court proceeded to dismiss          C
both the civil suits, being OS No. 293 of 2012 and OS No. 238 of 2012,
while leaving the parties to bear their own costs.
       3.7. There had been two other civil suits, being OS No. 181 of
2007 and OS No.497 of 2006, which were filed by the respondent Nos.
2 to 5 of the present appeal (sisters of the respondent No. 1), seeking         D
partition respectively of theatre and land on one hand and shopping
complex on the other. These civil suits for partition, as filed by the four
sisters of respondent No. 1, were decreed by the Trial Court.
       3.8. For what has been noticed hereinabove, the net result had
been that while the two civil suits filed by the plaintiff-respondent No. 1     E
for cancellation of sale deed and for prohibitory injunction were dismissed,
theother two civil suits filed by her sisters seeking partition of respective
properties were decreed.These four decisions were challenged by the
respondent No. 1 in the High Court by way of four appeals, being RFA
No. 96 of 2012 (pertaining to OS No. 497 of 2006), RFA No. 287 of               F
2010 (pertaining to OS No. 181 of 2007), RFA No. 238 of 2014 (pertaining
to OS No. 238 of 2012) and RFA No. 247 of 2014 (pertaining to OS No.
293 of 2012). All these four appeals were decided together by the High
Court in its common judgment and order dated 28.06.2019.
       4. As noticed, the present appeal relates only to RFA No. 247 of         G
2014 (pertaining to OS No. 293 of 2012). Therefore, dilation on all the
factual aspects of the four civil suits and respective findings of the High
Court may not be of direct relevance for the present purpose but, for the
fact that they relate to cognate mattersand the appeals have been decided
by the common judgment, for a comprehension of the views of the High
                                                                                H
8            SUPREME COURT REPORTS                           [2023] 5 S.C.R.


A   Court, it would be profitable to take a brief note of the findings in the
    impugned judgment.
           4.1. The High Court observed that the common issue arising for
    determination in the appeals was regarding the character of the subject-
    property namely, theatre with land and shopping complex with land after
B   the five sisters, i.e., respondent No. 1 and respondent Nos. 2 to 4 entered
    into the partnership arrangement. The High Court adverted to the question
    as to whether the properties obtained by them under the partition would
    partake the character of partnership assets after theformation of
    partnership; and took note of the principles as to how a property could
    be brought in as a partnership asset expressly or by conduct. The High
C   Courtobserved that merely because separate properties of the partners
    were used for the business of the partnership, it would not entail a
    presumption that the properties were brought in as partnership assets.
    After dealing with the relevant clauses of the partnership deed as also
    the other two sale deeds dated 10.11.2004 and 17.01.2004, executed
D   jointly by five sisters, the High Court ultimately held that the properties
    obtained by these five sisters under the partition deed continued to be
    held as co-ownership properties even after execution of the partnership
    deed dated 28.01.2003. The High Court, therefore, held the properties
    to be co-ownership properties and consequently, upheld the judgment
    and decree of the Trial Court in relation to OS No. 497 of 2006 and OS
E   No. 181 of 2007 for partition of properties. The High Court observed
    and held as under: -
                 “13. Having held the properties to be co-ownership
          properties, the suits OS 497/06 and OS 181/07 for partition of the
          properties are liable to be decreed. The judgment and decree of
F         the trial court are only to be upheld and I do so.”
           4.2. Reverting to the two civil suits filed by the respondent No. 1,
    the High Court, in the first place, referred to OS No. 238 of 2012, wherein
    the plaintiff-respondent No. 1 had claimed prohibitory injunction against
    the defendants. It was noticed that the relief was claimedby her in the
G   capacity of a partner of the firm against other partners. The High Court
    observed that the partnership was an unregistered one and, therefore,
    the suit was barred under Section 69(1) of the Indian Partnership Act,
    1932. Hence, the decree of the Trial Court dismissing the suit (OS No.
    238 of 2012) was affirmed.
H
               SIRAJUDHEEN v. ZEENATH & ORS.                                   9
                  [DINESH MAHESHWARI, J.]

       5. After dealing with the aforesaid three civil suits, the High Court   A
referred to the questions involved in OS No. 293 of 2012 and noted the
grounds on which the relief was claimed for cancellation of the sale
deed. The High Court summarised the grounds of challenge as follows:-
      “17. In OS 293/12 from which RFA 247/14 arises, the relief
      claimed is for setting aside Ext.A1 Sale Deed. The grounds on            B
      which the sale deed is sought to be set aside are: -
            (a) The property being a partnership asset, the interest of a
      partner in a specific item of partnership property is inalienable.
      (AddankiNarayanappa v. Bhaskara Krishnappa (dead) and
      others AIR 1966 SC 1300).                                                C
            (b) The terms of the partnership deed expressly prohibits a
      partner from alienating his share in the partnership without the
      consent of the other partners.
             (c) “Non est factum” – the plaintiff was made to believe
      that she was executing a security deed for the distributionship of       D
      a film; she never intended to execute a Sale Deed.”
       5.1. The first two grounds aforesaid were rejected by the High
Court with reference to the fact that the property in question was a co-
ownership property and not a partnership asset; and what was purported
to be conveyed under the sale deed in question (Ex. A-1) was 1/5 th right      E
of the plaintiff as the co-owner of the property and it was not in the
assignment of the right of a partner. The High Court, therefore, rejected
these two grounds. Moving on to the third ground pertaining to non est
factum, the High Court observed that on the evidence available on record,
there were certain circumstances leaning in favour of the plaintiff and        F
there wereother circumstances leaning in favour of the genuineness of
the sale. The observations of the High Court as regards the competing
sets of evidence read as under: -
             “21. On the evidence available, certain circumstances lean
      in favour of the plaintiff. According to the defendants, the husband
                                                                               G
      of the plaintiff was acting as the Manager of the firm. On the day
      on which Ext.A1 sale deed was executed, admittedly he was out
      of station. The extreme urgency for execution of Ext.A1 on that
      day, in his absence, has not been brought out. Ext.A1 sale deed is
      stated to have been executed pursuant to an agreement for sale
      dated 23.11.05. The agreement for sale is claimed to have been           H
10      SUPREME COURT REPORTS                            [2023] 5 S.C.R.


A    executed by all the five sisters together in favour of the first
     defendant – Sirajudeen. The execution of the agreement for sale
     is disputed by the plaintiff. Though the alleged agreement for sale
     relates to the interests of all the sisters. Ext.A1 sale relates to the
     rights of the plaintiff alone. This is under normal circumstances
     improbable. The defendants set up a case that the proposed
B
     purchaser Sirajudheen sought for time for completing the sale
     and that the husband of the plaintiff was not agreeable and it was
     under such circumstances that Ext.A1, regarding the plaintiff’s
     share alone, was executed. There is nothing to indicate that the
     plaintiff or her husband were in urgent need of money. After having
C    entered into an agreement for sale in respect of a property, under
     ordinary circumstances a prudent purchaser would not purchase
     a mere 1/5 shares out of the property especially when the subject
     matter is a theatre. Further, though Ext.A1 sale deed recites the
     sale consideration as 6 lakhs, according to the defendants, the
     total consideration paid for Ext.A1 was           50 lakhs. There is
D
     absolutely no evidence to prove the passing of consideration.
     According to the plaintiff, no consideration has passed since no
     sale deed was under contemplation. Relying on the decision of
     this Court in Pathu v. Katheesa Umma, [1990(2) KLT SN.51],
     it is argued by the respondents that since the document is a
E    registered one, its due execution is to be presumed. However, as
     held in Ponnan v. Kuttipennu[1987 (2) KLT 455], when the
     execution is denied, registration does not amount to proof of
     execution.
            22. As against the above circumstances, there are various
F    circumstances, as pointed out by the defendant, which favour the
     genuiness of the sale. In addition to Ext.A1 sale deed, Ext.B17
     sale note was executed regarding the furniture and other
     equipments in the theatre. This probabilises the execution of Ext.A1
     sale. According to the plaintiff, the execution and registration of
     Ext.A1 did not take place at the Sub Registrar’s Office; she was
G    made to affix signatures while she was at the ground floor of the
     building. However, the Sub Registrar or the Document writer have
     not been examined. The document writer is the same person who
     executed sale deed in respect of the other two items(items 1 and
     4) that belonged to the sisters under the partition. Though in
H    paragraph 3 of the plaint, it is alleged that the brother of the
                SIRAJUDHEEN v. ZEENATH & ORS.                                    11
                   [DINESH MAHESHWARI, J.]

       plaintiff’s husband accompanied the plaintiff to the SRO, he has          A
       not been examined. The plaintiff who is said to have been
       defrauded has not stepped into the witness box. Though under
       Section 120 of the Indian Evidence Act, the husband may be a
       competent witness to depose on behalf of wife, in the nature of
       the allegations as made, the plaintiff was a vital witness and her
                                                                                 B
       non-examination looms large.”
       5.2. After the observations aforesaid, the High Court expressed
that the evidence necessary for proper determination of the suit had not
been brought on record; and that the evidence on record was insufficient
to arrive at a proper finding in favour of or against the sale deed. For
these observations, the High Court considered it appropriate that the            C
parties be given an opportunity to adduce further evidence and the matter
be considered afresh. The High Court concluded on the matter with the
following observations and directions: -
              “23. From the above, I notice that evidence necessary for
       a proper determination of the suit has not been brought on record.        D
       The evidence on record is insufficient to arrive at a proper finding
       in favour of or against Ext.A1 Sale Deed. Material witnesses
       have not been examined. No evidence has been brought in with
       regard to passing of consideration. In the circumstances I am of
       the opinion that it would only be appropriate if the parties are          E
       given an opportunity to adduce further evidence and the matter
       be considered afresh. The decree and judgment in OS 293/12 is
       to be set aside and the suit remanded back to the trial court for
       disposal de novo.
               In the result, RFA Nos.96/12, 827/10, 238/14 are dismissed,       F
       but without costs. RFA 247/14 is allowed. The judgment and decree
       in OS 293/13 is set aside and the suit is remitted back to the trial
       court for disposal de novo after affording opportunity to all the
       parties to adduce further evidence. Parties to appear before the
       trial court on 24.07.2019.”
                                                                                 G
      6. Assailing the aforesaid judgment and order dated 28.06.2019,
learned counsel for the appellant has strenuously argued that want of
production of sufficient evidence had been a failure on the part of plaintiff-
respondent No. 1 to prove her case but this failure on her part cannot be
a ground to put the matter into another round of proceedings in the Trial
Court. It has also been submitted that the High Court ought not to have          H
12                SUPREME COURT REPORTS                       [2023] 5 S.C.R.


A    remanded the suit for a fresh trial while requiring the parties to adduce
     fresh evidence because neither any ground was pleaded nor any relief
     was sought to that effect. Learned counsel would elaborate that it had
     not been the case of the plaintiff-respondent No. 1 that the Trial Court
     failed to consider any evidence adduced by her or that she could not
     produce any vital piece of evidence for any valid reason. On the contrary,
B
     she neither got examined herself nor examined the Sub Registrar, who
     had registered the sale deed; and rather, the plaintiff’s husband,who
     was an attesting witness to the earlier agreement for sale, was examined
     in evidence on her behalf as PW-1. With reference to illustration (g) to
     Section 114 of the Evidence Act, learned counsel for the appellant has
C    argued that adverse inference ought to have been drawn against the
     plaintiff-respondent No. 1 for not presenting herself in the witness-box,
     particularly when the allegations of fraud were sought to be made the
     basis of her claim. Learned counsel has also submitted that none of the
     elements of proviso (1) to Section 92 of the Evidence Act having been
     established,the Trial Court, after appreciation of evidence, took a
D
     reasonable view of the matter while finding that the circumstances were
     probabilising the case of the defendant-appellant. Hence, for the suit
     having rightly been dismissed, there was no reason to remand the case
     for a trial de novo.Learned counsel has referred to and relied upon the
     decision of this Court in the case of Municipal Corporation, Hyderabad
E    v. Sunder Singh: (2008) 8 SCC 485.
            7. Per contra, with reference to the background aspects, the
     learned counsel for the plaintiff-respondent No.1 has vehemently argued
     that the sale deed in question is a void document as no consideration
     was passed on to her and hence, the same is liable to be set aside.
F    According to the learned counsel, when the Appellate Court came to the
     conclusion that necessary evidence for proper determination of suit had
     not been brought on record, it had wide and ample powers to even suo
     motu remand the matter to the Trial Court; and the High Court cannot
     be faulted in adopting this course in the present matter for securing the
     ends of justice. Learned counsel has referred to the provisions contained
G    in Rules 23, 23-A, 24, 27(1)(b) and 33 of Order XLI of the Code of Civil
     Procedure, 19082 to submit that the High Court has rightly remanded the
     matter after coming to the conclusion that the evidence on record was
     insufficient to arrive at a proper finding in favour of or against the sale

     2
H        ‘CPC’, for short.
               SIRAJUDHEEN v. ZEENATH & ORS.                                  13
                  [DINESH MAHESHWARI, J.]

deed. It has also been submitted that as per Section 120 of the Evidence      A
Act, husband of the plaintiff-respondent No. 1was a competent witness
as he was the Manager of the theatre and was having knowledge about
all the affairs of the theatre and hence, it was entirely immaterial that
the plaintiff-respondent No. 1 did not enter the witness-box. Learned
counsel has reiterated the stand of the plaintiff that she was made to
                                                                              B
sign on the sale deed as if it were a security document and therefore, the
sale deed, suffering from misrepresentation by the defendants as also
want of consideration, deserves to be set aside. It is also submitted that
the alleged agreement for sale dated 23.11.2005 is also a disputed
document and no reliance could be placed on the same. Learned counsel
has referred to and relied upon a decision of this Court in the case of       C
Sanjay Kumar Singh v. State of Jharkhand: (2022) 7 SCC 247.
      8. We have given anxious considerations to rival submissions and
have examined the record with reference to the law applicable.
       8.1. Though learned counsel for the parties have made a few
submissions touching upon the merits of the case but, we would leave          D
those submissions concerning merits of the case at that only because
the real question calling for determination in this appeal is as to whether
the High Court has been justified in remanding the matter for trial
de novo?
       9. As regards the question calling for determination in the present    E
appeal and with reference to the submissions made, we may, in the first
place, take note of the relevant provisions of law and the expositions of
this Court in the cited decisions.
      9.1. The provisions contained in Rules 23, 23-A, 24, 27 and 33
of Order XLI CPC read as under: -                                             F
      “23. Remand of case by Appellate Court.-Where the Court
      from whose decree an appeal is preferred has disposed of the
      suit upon a preliminary point and the decree is reversed in appeal,
      the Appellate Court may, if it thinks fit, by order remand the case,
      and may further direct what issue or issues shall be tried in the       G
      case so remanded, and shall send a copy of its judgment and
      order to the Court from whose decree the appeal is preferred,
      which directions to re-admit the suit under its original number in
      the register of civil suits, and proceed to determine the suit; and
                                                                              H
14      SUPREME COURT REPORTS                            [2023] 5 S.C.R.


A    the evidence (if any) recorded during the original trial shall, subject
     to all just exceptions, be evidence during the trial after remand.
     23-A. Remand in other cases.-Where the Court from whose
     decree an appeal is preferred has disposed of the case otherwise
     than on a preliminary point, and the decree is reversed in appeal
B    and a re-trial is considered necessary, the Appellate Court shall
     have the same powers as it has under rule 23.
     24. Where evidence on record sufficient, Appellate Court
     may determine case finally.-Where the evidence upon the record
     is sufficient to enable the Appellate Court to pronounce judgment,
C    the Appellate Court may, after resettling the issues, if necessary,
     finally determine the suit, notwithstanding that the judgment of
     the Court from whose decree the appeal is preferred has
     proceeded wholly upon some ground other than that on which the
     Appellate Court proceeds.
D    *****                       *****                       *****
     27. Production of additional evidence in Appellate Court.-
     (1) The parties to an appeal shall not be entitled to produce
     additional evidence, whether oral or documentary, in the Appellate
     Court. But if-
E       (a)     the Court from whose decree the appeal is preferred
                has refused to admit evidence which ought to have been
                admitted, or
        (aa)    the party seeking to produce additional evidence,
                establishes that notwithstanding the exercise of due
F               diligence, such evidence was not within his knowledge
                or could not, after the exercise of due diligence, be
                produced by him at the time when the decree appealed
                against was passed, or
        (b)     the Appellate Court requires any document to be
G               produced or any witness to be examined to enable it to
                pronounce judgment, or for any other substantial cause,
     the Appellate Court may allow such evidence or document to be
     produced, or witness to be examined.

H
              SIRAJUDHEEN v. ZEENATH & ORS.                                 15
                 [DINESH MAHESHWARI, J.]

      (2) Wherever additional evidence is allowed to be produced by         A
      an Appellate Court, the Court shall record the reason for its
      admission.
      *****                      *****                    *****
      33. Power of Court of Appeal-The Appellate Court shall have
      power to pass any decree and make any order which ought to            B
      have been passed or made and to pass or make such further or
      other decree or order as the case may require, and this power
      may be exercised by the Court notwithstanding that the appeal is
      as to part only of the decree and may be exercised in favour of all
      or any of the respondents or parties, although such respondents       C
      or parties may not have filed any appeal or objection and may,
      where there have been decrees in cross-suits or where two or
      more decrees are passed in one suit, be exercised in respect of all
      or any of the decrees, although an appeal may not have been filed
      against such decrees:
                                                                            D
      Provided that the Appellate Court shall not make any order under
      section 35A, in pursuance of any objection on which the Court
      from whose decree the appeal is preferred has omitted or refused
      to make such order.”
      9.2. While explaining the scope of Rules 23 and 23-A of Order         E
XLI CPC, in the case of Municipal Corporation, Hyderabad (supra),
this Courthas observedas under: -
      “32. A distinction must be borne in mind between diverse powers
      of the appellate court to pass an order of remand. The scope of
      remand in terms of Order 41 Rule 23 is extremely limited. The         F
      suit was not decided on a preliminary issue. Order 41 Rule 23
      was therefore not available. On what basis, the secondary evidence
      was allowed to be led is not clear. The High Court did not set
      aside the orders refusing to adduce secondary evidence.
      33. Order 41 Rule 23-A of the Code of Civil Procedure is also
                                                                            G
      not attracted. The High Court had not arrived at a finding that a
      retrial was necessary. The High Court again has not arrived at a
      finding that the decree is liable to be reversed. No case has been
      made out for invoking the jurisdiction of the Court under Order 41
      Rule 23 of the Code.
                                                                            H
16            SUPREME COURT REPORTS                            [2023] 5 S.C.R.


A          34. An order of remand cannot be passed on ipse dixit of the
           court…...”
            9.3. In the case of Sanjay Kumar Singh (supra) relied upon by
     the learned counsel for the respondent No. 1, this Court has observed as
     under: -
B          “7. It is true that the general principle is that the appellate court
           should not travel outside the record of the lower court and cannot
           take any evidence in appeal. However, as an exception, Order 41
           Rule 27CPC enables the appellate court to take additional evidence
           in exceptional circumstances. It may also be true that the appellate
C          court may permit additional evidence if the conditions laid down
           in this Rule are found to exist and the parties are not entitled, as of
           right, to the admission of such evidence. However, at the same
           time, where the additional evidence sought to be adduced removes
           the cloud of doubt over the case and the evidence has a direct
           and important bearing on the main issue in the suit and interest of
D          justice clearly renders it imperative that it may be allowed to be
           permitted on record, such application may be allowed. Even, one
           of the circumstances in which the production of additional evidence
           under Order 41 Rule 27CPC by the appellate court is to be
           considered is, whether or not the appellate court requires the
E          additional evidence so as to enable it to pronounce judgment or
           for any other substantial cause of like nature.
           8. As observed and held by this Court in A. Andisamy Chettiar v.
           A.SubburajChettiar [(2015)17 SCC 713], the admissibility of
           additional evidence does not depend upon the relevancy to the
F          issue on hand, or on the fact, whether the applicant had an
           opportunity for adducing such evidence at an earlier stage or not,
           but it depends upon whether or not the appellate court requires
           the evidence sought to be adduced to enable it to pronounce
           judgment or for any other substantial cause. It is further observed
           that the true test, therefore is, whether the appellate court is able
G          to pronounce judgment on the materials before it without taking
           into consideration the additional evidence sought to be adduced.”
          10. It could at once be noticed that in terms of Rule 33 of Order
     XLI CPC, the Appellate Court is empowered to pass any decree and to
     make any order which ought to have been passed or made; and which
H    may be considered requisite in a case. While the said Rule 33 prescribes
                SIRAJUDHEEN v. ZEENATH & ORS.                                   17
                   [DINESH MAHESHWARI, J.]

general powers of the Court of appeal, the specific powers of remand            A
are prescribed in Rules 23 and 23-A of Order XLI CPC. Hence,for the
purpose of the case at hand, reference to aforesaid Rule 33 remains
inapposite. Having said so, we may proceed to examine if the order of
remand in the present case could be justified with reference to the other
referred provisions of Order XLI CPC?
                                                                                B
       11. One of the striking features of the impugned judgment dated
28.06.2019 is that even while dealing with a regular first appeal against
the judgment and decree of the Trial Court, the High Court has not even
adverted to the findings of the Trial Court pertaining to the present case
and has not specified as to how the findings recorded by the Trial Court
were unsustainable or unjustified. As noticed, in the impugned judgment,        C
the High Court has narrated a few circumstances leaning in favour of
the plaintiff (in paragraph 21) and then a few other circumstances which
favour the genuineness of the sale in question (in paragraph 22) and
thereafter, has observed that the evidence necessary for a proper
determination of the suit had not been brought on record; and that the          D
evidence on record was insufficient to arrive at a proper finding in favour
or against the sale deed in question. The High Court would further
observe that material witnesses have not been examined and no evidence
has been brought in with regard to passing of consideration.
       11.1. With respect, what turns on the observations in the impugned       E
judgment is that the High Court was unable to arrive at a conclusion on
the basis of the material on record. However, fact of the matter remains
that on the basis of the same material on record, the Trial Court had
indeed arrived at a definite conclusion that the plaintiff had failed to
establish her case and hence, the suit was liable to be dismissed. As
indicated hereinabove, the High Court has not at all referred to the findings   F
of the Trial Court and it is difficult to find from the judgment impugned
as to why at all those findings of the Trial Court were not to be sustained
or the decree was required to be reversed.
       11.2. After having taken note of the salient features of the
impugned judgment as also the significant omissions therein, if we refer        G
to the provisions empowering the Appellate Court to make an order of
remand, it is difficult to find any justification for remand by the High
Court in the present case. As noticed, the scope of remand in terms of
Rule 23 of Order XLI CPC is extremely limited and that provision is
inapplicable because the suit in question had not been disposed of on a
                                                                                H
18            SUPREME COURT REPORTS                           [2023] 5 S.C.R.


A    preliminary point. The remand in the present case could only be correlated
     with Rule 23-A of Order XLI CPC and for its applicability, the necessary
     requirements are that “the decree is reversed in appeal and a re-trial
     is considered necessary”. As noticed hereinabove, there is no reason
     whatsoever available in the impugned judgment as to why and on what
     basis the decree was reversed by the High Court. Obviously, the reversal
B
     has to be based on cogent reasons and for that matter, adverting to and
     dealing with the reasons that had prevailed with the Trial Court remains
     a sine qua non. Thus, remand in the present case cannot be held justified
     even in terms of Rule 23-A of Order XLI CPC.
            12. On the facts of the present case and the nature of order passed
C    by the High Court, the enunciations and observations in the case of
     Sanjay Kumar Singh (supra) are of no application whatsoever as none
     of the parties have sought any permission to adduce evidence nor the
     High Court has specified as to what specific evidence was considered
     necessary to enable it to pronounce judgment or for any substantial cause.
D    Moreover, it does not appear from the judgment of the High Court if the
     plaintiff-respondent No. 1 (appellant before the High Court), ever
     projected that the Trial Court did not allow her to produce any evidence
     that was sought to be produced. It is also not borne out if any of the
     parties at all made out any case for production of additional documents
     or oral evidence with reference to the applicable principles. Hence, the
E    general observations of the High Court cannot be correlated with Rule
     27(1) either. With respect, we are constrained to apply the observations
     of this Court in Municipal Corporation, Hyderabad (supra) to say
     that the present order of remand has been passed only on ipse dixit of
     High Court sans any reason or justification.
F           13. It gets perforce reiterated that in the suit filed by respondent
     No. 1, the Trial Court had indeed returned its findings on the basis of
     evidence on record. Whether those findings are sustainable or not is a
     matter entirely different and the High Court may examine the same but
     merely because the High Court could not reach to a conclusion on
G    preponderance of probabilities, the evidence on record could not have
     been treated as insufficient so as to not pronounce the judgment in terms
     of Rule 24 of Order XLI CPC.
            14. In regard to the want of any particular evidence, we may
     observe in the passing that if the Court finds any particular evidence
     directly within the control and possession of a party having not been
H
                    SIRAJUDHEEN v. ZEENATH & ORS.                                         19
                       [DINESH MAHESHWARI, J.]

produced, the necessary consequences like those specified in illustration                 A
(g) to Section 114 of the Evidence Act3 may follow but, merely because
a particular evidence which ought to have been adduced but had not
been adduced, the Appellate Court cannot adopt the soft course of
remanding the matter. We would hasten to observe that we are not
commenting on the merits of the case either way. The observations
                                                                                          B
herein are only to indicate that the remand of the suit for trial de novo
cannot be considered justified in the present case from any standpoint.
       15. For what has been discussed hereinabove, suffice it would be
to sum upthat for a few tentative observations about certain circumstances
existing in favour of the plaintiff and certain other circumstances existing
in favour of the defendants and then,with another observation that plaintiff              C
was a vital witness, the High Court was not justified in remanding the
matter for trial de novo without recording any finding if the plaintiff was
prevented from examining herself or from adducing any other evidence
as also without explaining as to on what ground the decree was being
reversed.                                                                                 D
       16. Accordingly, and in view of the above, this appeal succeeds
and is allowed. The impugned judgment and order dated 28.06.2019,
insofar as relating to RFA No. 247 of 2014 (pertaining to OS No. 293 of
2012), is set aside; and the said appeal is restored for reconsideration by
the High Court in accordance with law. The parties through their respective               E
counsel shall stand at notice to appear before the High Court on
20.03.2023.
       17. Having regard to the circumstances, there shall be no order
as to costs of the present appeal.
                                                                                          F
Ankit Gyan                                                              Appeal allowed.
(Assisted by : Mayank Batra, LCRA)




                                                                                          G
3
    Illustration (g) to Section 114 of the Evidence Act reads under:-
            “The Court may presume –
            ***                   ***                ***
            (g) That evidence which could be and is not produced would, if produced, be
            unfavourable to the person who withholds it;
            ***                   ***                ***”                                 H


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "CPC"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.