Case: SUDARSAN PUHAN Vs. JAYANTA KUMAR MOHANTY AND ANR

appellate court. Sitting as a court of first appeal, it was the duty of the High Court to deal with all the issues and the evidence led by the parties before recording its findings. The first appeal is a valuable right and the parties have a right to be heard both on questions of law and on facts and the judgment in the first appeal must address itself to all the issues of law and fact and decide it by giving reasons in support of the findings. (Vide Santosh Hazari v. Purushottam Tiwari, (2001) 3 SCC 179 at p. 188, para 15 and Madhukar v. Sangram, (2001) 4 SCC 756 at p. 758, para 5.) 5. In view of the above salutary principles, on going through the impugned judgment, we feel that the High Court has failed to discharge the obligation placed on it as a first appellate court. In our view, the judgment under appeal is cryptic and none of the relevant aspects have even been noticed. The appeal has been decided in an unsatisfactory manner. Our careful perusal of the judgment in the regular first appeal shows that it falls short of considerations which are expected from the court of first appeal. Accordingly, without going into the merits of the claim of both parties, we set aside the impugned judgment and decree of the High Court and remand the regular first appeal to the High Court for its fresh disposal in accordance with law. 30. The aforementioned cases were relied upon by this Court while reiterating the same principle in State Bank of India and Anr. v. Emmsons International Ltd. and Anr., (2011) 12 SCC 174 and Uttar Pradesh State Road Transport Corporation v. Mamta and Ors. (2016) 4 SCC 172 . 31. An appeal Under Section 173 of the M.V. Act is essentially in the nature of first appeal alike Section 96 of the Code and, therefore, the High Court is equally under legal obligation to decide all issues arising in the case both on facts and law after appreciating the entire evidence. [See National Insurance Co. Ltd. v. Naresh Kumar and Ors. ((2000) 10 SCC 198 and State of Punjab and Anr. v. Navdeep Kuur and Ors. (2004) 13 SCC 680]. 32. As observed supra, as a first Appellate Court, it was the duty of the High Court to have decided the appeals keeping in view the requirements of Order XX Rule 4(2) read with Order XLI Rule 31 of the Code which requires that judgment/order shall contain a concise statement of the case, points for determination, decisions thereon and the reasons. 33. Coming now to the facts of the case at hand, we consider it appropriate to reproduce the order of the High Court infra: Considering the submissions made by the learned Counsel for the parties and keeping in view the quantum of compensation amount awarded and the basis on which the same has been arrived at I feel, the interest of justice would be best served if the awarded compensation amount of Rs. 24,62,065/- is modified and reduced to Rs. 20,00,000/- which is payable to the claimant along with the awarded interest. The impugned award is modified to the said extent. The Appellant-Insurance Company is directed to deposit the modified compensation amount of Rs. 20,00,000/- along with awarded interest with the learned Tribunal within six weeks hence. On deposit of the amount, the same shall be disbursed to the claimant proportionately, as per the direction of the learned Tribunal given in the impugned award. 34. Mere perusal of the afore-quoted order of the High Court would show that the High Court neither set out the facts of the case of the parties in detail, nor dealt with any of the submissions urged except to mention them, nor took note of the grounds raised by the claimant and nor made any attempt to appreciate the evidence in the light of the settled legal principles applicable to the issues arising in the case and proceeded to allow the appeal filed by the Insurance Company and reduced the compensation from Rs. 24,62,065/- to Rs. 20,00,000/-. 35. The High Court only observed Considering the submissions of the learned Counsel for the parties and I feel that compensation should have been awarded as Rs. 20,00,000/- and not Rs. 24,62,065/- . No reasons were given by the High Court as to why the amount of compensation should be reduced from Rs. 24,62,065/- to Rs. 20,00,000/- and why it cannot be enhanced. Since the Appellant-claimant had also filed appeal for enhancement of the compensation, the entire controversy was again open for decision before the High Court at the instance of the claimant and Insurance Company. It was, therefore, necessary for the High Court to assign the reasons for not granting enhancement of compensation and/or its reduction. In the absence of any reasons, we are unable to uphold the impugned orders of the High Court. 36. As mentioned above, the Insurance Company did not choose to file any special leave to appeal in this Court against the impugned order of the High Court. The effect of non-filing of appeal is that the Insurance Company has in principle accepted the High Courts order. 37. This Court having allowed the claimants appeal and setting aside the impugned order, it results in dismissal of the appeal filed by the Insurance Company (M.A.C.A. No. 839 of 2014) and allowing of the appeal (M.A.C.A. No. 690/2014) filed by the claimant. Had the Insurance Company filed special leave to appeal against the impugned order in this Court seeking further reduction in the compensation awarded by the High Court like what the Insurance Company did when they had filed appeal before the High Court questioning inter alia the quantum of compensation being on higher side, the Insurance Company too would have been entitled to prosecute their appeal on merits after remand before the High Court in terms of this order. It was, however, not done by the Insurance Company.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]20. Having heard the learned Counsel for the parties and on perusal of the record of the case, we find force in the submissions of the learned Counsel for the Appellant-claimant21. The powers of the first Appellate Court while deciding the first appeal are indeed well defined by various judicial pronouncements of this Court and are, therefore, no more res integra31. An appeal Under Section 173 of the M.V. Act is essentially in the nature of first appeal alike Section 96 of the Code and, therefore, the High Court is equally under legal obligation to decide all issues arising in the case both on facts and law after appreciating the entire evidence. [See National Insurance Co. Ltd. v. Naresh Kumar and Ors. ((2000) 10 SCC 198  and State of Punjab and Anr. v. Navdeep Kuur and Ors. (2004) 13 SCC 680]32. As observed supra, as a first Appellate Court, it was the duty of the High Court to have decided the appeals keeping in view the requirements of Order XX Rule 4(2) read with Order XLI Rule 31 of the Code which requires that judgment/order shall contain a concise statement of the case, points for determination, decisions thereon and the reasons34. Mere perusal of the afore-quoted order of the High Court would show that the High Court neither set out the facts of the case of the parties in detail, nor dealt with any of the submissions urged except to mention them, nor took note of the grounds raised by the claimant and nor made any attempt to appreciate the evidence in the light of the settled legal principles applicable to the issues arising in the case and proceeded to allow the appeal filed by the Insurance Company and reduced the compensation from Rs. 24,62,065/- to Rs. 20,00,000/-35. The High Court only observed Considering the submissions of the learned Counsel for the parties and I feel that compensation should have been awarded as Rs. 20,00,000/- and not Rs. 24,62,065/- . No reasons were given by the High Court as to why the amount of compensation should be reduced from Rs. 24,62,065/- to Rs. 20,00,000/- and why it cannot be enhanced. Since the Appellant-claimant had also filed appeal for enhancement of the compensation, the entire controversy was again open for decision before the High Court at the instance of the claimant and Insurance Company. It was, therefore, necessary for the High Court to assign the reasons for not granting enhancement of compensation and/or its reduction. In the absence of any reasons, we are unable to uphold the impugned orders of the High Court36. As mentioned above, the Insurance Company did not choose to file any special leave to appeal in this Court against the impugned order of the High Court. The effect of non-filing of appeal is that the Insurance Company has in principle accepted the High Courts order37. This Court having allowed the claimants appeal and setting aside the impugned order, it results in dismissal of the appeal filed by the Insurance Company (M.A.C.A. No. 839 of 2014) and allowing of the appeal (M.A.C.A. No. 690/2014) filed by the claimant. Had the Insurance Company filed special leave to appeal against the impugned order in this Court seeking further reduction in the compensation awarded by the High Court like what the Insurance Company did when they had filed appeal before the High Court questioning inter alia the quantum of compensation being on higher side, the Insurance Company too would have been entitled to prosecute their appeal on merits after remand before the High Court in terms of this order. It was, however, not done by the Insurance Company.