IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.07.2011 CORAM THE HON'BLE MR.JUSTICE S.NAGAMUTHU Second Appeal No.815 of 1998 Thamilarasi ... Appellant/Respondent/Plaintiff -Versus- Selvam ... Respondent/Appellant/Defendant This second appeal is filed against the judgment and decree dated 22.01.1997 made in A.S.No.39 of 1996 on the file of the learned Principal Sub Judge, Nagapattinam allowing the appeal and thereby reversing the judgment and decree dated 26.10.1993 made in O.S.No.113 of 1990 on the file of the District Munsif, Mannargudi. For Appellant : Mr.V.Raghavachari For Respondent : Mr.A.Muthukumar JUDGMENT This second appeal raises an important substantial question of law as to whether an appeal would lie against a mere finding at the instance of the party who had succeeded in the suit or not? 2. The facts of the case would be as follows:- The plaintiff filed the suit in O.S.No.113 of 1990 on the file of the learned District Munsif, Mannargudi for permanent injunction to restrain the defendant from in any manner interfering with her alleged enjoyment and possession of the suit property comprised in S.No.2413/1 measuring 950 square feet out of the total extent of 2300 square feet at Mannargudi. The claim for title was made by the plaintiff on the basis of the settlement deed dated 27.05.1986 said to have been executed by her father. It was the case of the plaintiff that her father – Thirugnanam Pillai was the original owner of the suit property and after his demise on account of the said settlement deed , she has become absolute owner and she has been in possession and enjoyment of the same. 3. In the written statement filed by the defendant, it was contended that Thirugnanam Pillai had no title and the alleged settlement deed dated 27.05.1986 is void in law and the same has not conveyed either title or possession in favour of the plaintiff. It was further contended that the defendant was all along in possession https://hcservices.ecourts.gov.in/hcservices/ of the property as its absolute owner and so the suit is liable to be dismissed. 4. On the basis of the above pleadings the trial court framed as many as 6 issues as under:- 1. Whether the settlement deed dated 27.05.1986 is true and valid? 2. Whether the suit property originally belonged to the defendant and his father and whether it is true that his father has released the suit property absolutely in favour of the defendant? 3. Whether the aforesaid release deed dated 30.12.1971 is valid and on account of the same whether the defendant has become absolute owner of the same? 4. Whether the defendant has perfected his title by adverse possession? 5. Whether the suit property is in the possession and enjoyment of the plaintiff as claimed by him? 6. To what relief the plaintiff is entitled for? 5. In respect of the above issues, both sides let in both oral as well as documentary evidences. Having considered the same, the trial court found the issues No.1 to 4 in favour of the plaintiff holding that the settlement deed dated 27.05.1986 is valid and that the suit property was not at all owned by the defendant and his father. The trial court, however, found under issue No.5 that the possession of the suit property was not in the hands of the plaintiff and instead it was only in the hands of the defendant. Thus, the issue No.5 was answered in favour of the defendant. Under Issue No.4, the trial court held that the defendant had not perfected his title by adverse possession. Accordingly, the issue No.4 was answered against the defendant. The issue No.6 was however decided in favour of the defendant. Thus, ultimately the suit was dismissed. As against the findings under issue Nos.1 to 4 and 6, the defendant, feeling aggrieved, preferred an appeal in A.S.No.39 of 1996 before the learned Principal Sub Judge, Nagapattinam. The plaintiff did not prefer any appeal against the decree and judgment of the trial court. The learned Principal Sub Judge by judgment and decree dated 22.01.1997 allowed the appeal and set aside the findings of the trial court in respect of issue Nos.1 to 4 and 6. It is against the same, the plaintiff has come up with this second appeal. 6. While admitting this second appeal, this court framed the following substantial questions of law:- 1. Whether the lower appellate court is right in dismissing the suit and in vacating the findings rendered in issue Nos.1 to 4 and 6 especially when the fact of the case necessitates the court to decide on the issue of title? https://hcservices.ecourts.gov.in/hcservices/ 2. Whether the order of the lower appellate court is right in entertaining the appeal in the absence of any decree operating against the defendant? 7. For the sake of convenience, let me take up the second substantial question of law for consideration at first. It is the contention of the learned counsel for the appellant that the appeal preferred by the defendant, though he had succeeded in the suit, is not maintainable since appeal against the findings given on facts is not maintainable under Sections 96 and 100 of the Code of Civil Procedure. For this proposition, the learned counsel would place reliance on a few judgments of the Hon'ble Supreme Court as well as this Court. The learned counsel for the respondent would be very fair in his submission that as per the law laid down by the Hon'ble Supreme Court when the suit was dismissed in favour of the defendant, an appeal against certain findings or observations made in the said judgment would not be maintainable. The learned counsel on either side would, however, submit that any such observation or finding made in the judgment as against the party who has succeeded in the suit shall not operate as res judicata as provided in Section 11 of CPC. 8. I have considered the above submissions carefully. 9. Let us now analyze the law on the subject. The learned counsel for the appellant has brought to my notice a judgment of this Court in R.Maria Siluvai v. B.Sreekumari Amma and others, 1998 (2) CTC 218 wherein after having analyzed various judgments, this court has held as follows:- "From the above survey, the following broad legal principles emerge: (a) An appeal is creature of statute. Unless statutory conditions are fulfilled, a court of justice has no jurisdiction to entertain an appeal. (b) If the statute prohibits, the court has no jurisdiction to entertain an appeal. (c ) A successful party has no right of appeal against a finding against him. Such a decision will not operate as res judicata in a subsequent suit. (d) A question decided and a finding recorded against a losing party will operate as res judicata against him if not challenged by him. (3) A remand order conclusively deciding the rights of parties is a decree within the meaning of Clause (2) of Section 2 of the Code of Civil Procedure and hence appealable. If not appealed against it will operate as res judicata. If the appellate court purports to act under Order 41,Rule 23, CPC an order of remand is appealable. (f) The grounds available to an appellant in such appeals against findings are those which would be available to him in a second appeal. (g) In https://hcservices.ecourts.gov.in/hcservices/ appeals against orders of remand, the findings of fact other than those relating to the order of remand, cannot be pressed into service. (h) If findings on orders of remand are not appealed against, they will become final and the party aggrieved will be precluded from disputing their correctness. As already stated, the ultimate test is whether there is a final decision on any particular point against a party and if there is one and if he is a losing party, the finding against him has to be treated as a decree and an appeal lies. In the instant case, the documents Exs.B2 to B4 under which the appellant [D6] claimed title to suit item 3 have been held to be void. The learned Subordinate Judge remanded the matter to the trial court for affording an opportunity to implead the children of the fourth respondent Meenakshi Amma. However so far as the finding against the appellant that the sales in his favour are void is concerned, unless the appellant questioned it, it will bind him in further proceedings and in any subsequent suit by him or against him. In these circumstances, I am clearly of the view that the second appeal is maintainable." 10. But, a close perusal of the said judgment would go to show that the judgment of the Hon'ble Supreme Court reported in P.M.A. Metropolitan v. Moran Mar Marthoma , AIR 2008 SC 2001 was not brought to the notice of the learned Judge wherein the Hon'ble Supreme Court has taken a quite contrary view. The relevant portion of the judgment of the Hon'ble Supreme Court in paragraph 55 reads as follows:- "55. ............The pleadings of the parties giving rise to various issues and the question framed by the Division Bench and answered by it have been extracted in extenso. The crucial issue that had been argued was whether the direction of this court in Moran Mar Basselious (supra) 'that the judgment of the Kerala High Court is set aside, the decree of the trial court dismissing the suit must be restored', resulted in restoring the decree and not the judgment, therefore, any finding recorded in that suit could not operate as res judicata. In Satyadhyan Ghosal v. Sm. Deorajin Debi (1960) 3 SCR 590 : (AIR 1960 SC 941) this court insisted on finality in the strict sense of the term and observed as under (para 13 of AIR): "The very fact that in future litigation it will not be open to https://hcservices.ecourts.gov.in/hcservices/ either of the parties to challenge the correctness of the decision on a matter finally decided in a past litigation makes it important that in the earlier litigation the decision must be final in the strict sense of the term." This was affirmed by a Constitution Bench in The Mysore State Electricity Board v. Bangalore Woollen, Cotton and Silk Mils Ltd., 1963 Supp (2) SCR 127 : (AIR 1963 SC 1128) and it was observed (para 12 of AIR): "It is well settled that in order to decide whether a decision in an earlier litigation operates as res judicata, the Court must look at the nature of the litigation, what were the issues raised therein and what was actually decided in it.................it is indeed true that what becomes res judicata is the "matter" which is actually decided and not the reason which leads the Court to decide the 'matter' ". 11. Subsequently, in Deva Ram and another v. Ishwar Chand and another, 1995 SCC (6) 733 similar view has been taken by the Hon'ble Supreme Court. The latest one on the said subject from the Hon'ble Supreme Court is in Banarsi and others v. Ram Phal, AIR 2003 SC 1989 wherein after referring to the above judgments, the Hon'ble Supreme Court in paragraphs 8 & 9 of the judgment has held as follows:- "8. Sections 96 and 100 CPC make provision for an appeal being preferred from every original decree or from every decree passed in appeal respectively; none of the provisions enumerates the person who can file an appeal. However, it is settled by a long catena of decisions that to be entitled to file an appeal the person must be one aggrieved by the decree. Unless a person is prejudicially or adversely affected by the decree he is not entitled to file an appeal. (See Phoolchand v. Gopal Lal, Jatan Kumar Golcha v. Golcha Properties (P) Ltd. and Ganga Bai v. Vijay Kumar.) No appeal lies against a mere finding. It is significant to note that both Sections 96 and 100 CPC provide for an appeal against decree and not against judgment. 9. Any respondent though he may not have filed an appeal from any part of the decree may still support the decree to the extent to which it is already in his favour by laying challenge to a finding recorded in the impugned judgment against https://hcservices.ecourts.gov.in/hcservices/ him. Where a plaintiff seeks a decree against the defendant on grounds (A) and (B), any one of the two grounds being enough to entitle the plaintiff to a decree and the court has passed a decree on ground (A) deciding it for the plaintiff while ground (B) has been decided against the plaintiff, in an appeal preferred by the defendant, in spite of the finding on ground (A) being reversed the plaintiff as a respondent can still seek to support the decree by challenging the finding on ground (B) and persuade the appellate court to form an opinion that in spite of the finding on ground (A) being reversed to the benefit of the defendant-appellant the decree could still be sustained by reversing the finding on ground (B) though the plaintiff-respondent has neither preferred an appeal of his own nor taken any cross- objection. A right to file cross-objection is the exercise of right to appeal though in a different form. It was observed in Sahadu Gangaram Bhagade v. Special Dy. Collector, Ahmednagar that the right given to a respondent in an appeal to file cross- objection is a right given to the same extent as is a right of appeal to lay challenge to the impugned decree if he can be said to be aggrieved thereby. Taking any cross-objection is the exercise of right of appeal and takes the place of cross-appeal though the form differs. Thus it is clear that just as an appeal is preferred by a person aggrieved by the decree so also a cross-objection is preferred by one who can be said to be aggrieved by the decree. A party who has fully succeeded in the suit can and needs to neither prefer an appeal nor take any cross- objection though certain finding may be against him. Appeal and cross-objection — both are filed against decree and not against judgment and certainly not against any finding recorded in a judgment. This was the well-settled position of law under the unamended CPC." 12. A cursory reading of the above judgment of the Hon'ble Supreme Court would make it abundantly clear that it is the settled position of law that as against certain findings recorded in the judgement against the party, who has succeeded in the suit, no appeal at the instance of such succeeding party shall lie because he cannot be termed as an aggrieved person in terms of Sections 96 and 100 of CPC since the ultimate decree is in his favour. To put it otherwise , an appeal lies only against the decree and not against any finding recorded by the court at the instance of the party who has succeeded in the suit. In view of the law laid down by the Hon'ble Supreme Court in the above judgments, with respect, I hold https://hcservices.ecourts.gov.in/hcservices/ that the judgments of this court in R.Maria Siluvai's case cited supra, is not a binding precedent. 13. Applying the above said law laid down by the Hon'ble Supreme Court, if we look into the judgment of the first appellate court, the first appellate court had interfered with the decree and judgment of the trial court only in respect of the findings recorded by the trial court against the defendant though ultimately the trial court dismissed the suit in favour of the defendant. In my considered opinion, the judgment of the first appellate court which has reversed only certain findings and not the decree is not at all sustainable and, therefore, the same is liable to be set aside. While setting aside the judgment of the first appellate court, I am of the view that it is also absolutely necessary for this court to clarify that the findings recorded by the trial court under issue Nos.1 to 4 and 6 would not operate as res judicata in terms of Section 11 of CPC as held by the Hon'ble Supreme Court in the judgments cited supra. 14. In view of the finding under the substantial question of law No.2, there is no need to answer the substantial question of law No.1. Ultimately, the second appeal deserves to be allowed. 15. In the result, the second appeal is allowed; the judgment and decree of the first appellate court is set aside; and that of the trial court is restored with a clarification that the findings and observations made under Issue Nos.1 to 4 & 6 by the trial court shall not operate as res judicata against the respondent/defendant. No cost. Sd/ Asst. Registrar /true copy/ Sub Asst.Registrar kmk To 1.The Principal Sub Judge, Nagapattinam, Nagapattinam District. 2.The District Munsif, Mannargudi, Thiruvarur District. Second Appeal No.815 of 1998 RSI(CO) RVL 05.09.2011 https://hcservices.ecourts.gov.in/hcservices/