Case: K.N. NAGARAJAPPA &amp; ORS Vs. H. NARASIMHA REDDY

Court or Courts reason of a decision on such question of law as is referred to in section 100. 16. In the judgment reported as Municipal Committee, Hoshiarpur v. Punjab State Electricity Board (2010) 13 SCC 216 , this court held as follows: 26. Thus, it is evident that Section 103 CPC is not an exception to Section 100 CPC nor is it meant to supplant it, rather it is to serve the same purpose. Even while pressing Section 103 CPC in service, the High Court has to record a finding that it had to exercise such power, because it found that finding (s) of fact recorded by the court (s) below stood vitiated because of perversity. More so, such power can be exercised only in exceptional circumstances and with circumspection, where the core question involved in the case has not been decided by the court(s) below. 27. There is no prohibition on entertaining a second appeal even on a question of fact provided the court is satisfied that the findings of fact recorded by the courts below stood vitiated by non-consideration of relevant evidence or by showing an erroneous approach to the matter i.e. that the findings of fact are found to be perverse. But the High Court cannot interfere with the concurrent findings of fact in a routine and casual manner by substituting its subjective satisfaction in place of that of the lower courts. (Vide Jagdish Singh v. Natthu Singh [(1992) 1 SCC 647] ; Karnataka Board of Wakf v. Anjuman-E-Ismail Madris-Un-Niswan [(1999) 6 SCC 343] and Dinesh Kumar v. Yusuf Ali [(2010) 12 SCC 740] .) 28. If a finding of fact is arrived at by ignoring or excluding relevant material or by taking into consideration irrelevant material or if the finding so outrageously defies logic as to suffer from the vice of irrationality incurring the blame of being perverse, then the finding is rendered infirm in the eye of the law. If the findings of the Court are based on no evidence or evidence which is thoroughly unreliable or evidence that suffers from the vice of procedural irregularity or the findings are such that no reasonable person would have arrived at those findings, then the findings may be said to be perverse. Further if the findings are either ipse dixit of the Court or based on conjecture and surmises, the judgment suffers from the additional infirmity of non-application of mind and thus, stands vitiated. (Vide Bharatha Matha v. R. Vijaya Renganathan [(2010) 11 SCC 483] 17. In a recent judgment of this court, Narayan Sitaramji Badwaik (Dead) Through Lrs. v Bisaram & Ors 2021 SCC OnLine SC 319 this court observed as follows, in the context of High Courts jurisdiction to appreciate factual issues under Section 103 IPC: 11. A bare perusal of this section clearly indicates that it provides for the High Court to decide an issue of fact, provided there is sufficient evidence on record before it, in two circumstances. First, when an issue necessary for the disposal of the appeal has not been determined by the lower Appellate Court or by both the Courts below. And second, when an issue of fact has been wrongly determined by the Court(s) below by virtue of the decision on the question of law under Section 100 of the Code of Civil Procedure. 18. In the opinion of this court, in the present case, the High Court recorded sound and convincing reasons why the first appellate courts judgment required interference. These were entirely based upon the evidence led by the parties on the record. The appreciation of evidence by the first appellate court was on the basis of it having overlooked material facts, such as appreciation of documentary and oral evidence led before the trial court, that the execution of Ex.D-3 was denied. In these circumstances, the burden was upon the appellants to establish that the registered sale deed was a nominal document. The findings of the trial court –as was duly noticed by the High Court recorded five cogent reasons why the appellants pleas could not be accepted. The deposition with respect to repayment of ? 9000/- apart from being bereft of particulars, was also contrary to the provisions inasmuch as there was no averment with respect to payment of interest @ 15%. Furthermore, the appellants application for occupancy rights made after the sale deed and the alleged agreement to sell were executed claimed that the appellants were tenants under the respondent. Eventually, the order of the Land Tribunal was set aside; upon remand the Land Tribunal was of the opinion that it did not have the jurisdiction to decide the issue and left it to the trial court to do so. These important aspects appeared to have been not appreciated – and their import were overlooked. As a consequence, the first appellate court fell into error in overlooking important evidence and appreciating the record in its true perspective and reversed the decree of the trial court. Moreover, the High Court, in second appeal proceeded to examine the documents in light of the evidence led and corrected the findings as it were under Section 103. If the appellants arguments were to prevail, the findings of fact based upon an entirely erroneous appreciation of facts and by overlooking material evidence would necessarily have to remain and bind the parties, thereby causing injustice. It is precisely for such reasons that the High Courts are empowered to exercise limited factual review under Section 103 CPC. However, that such power could be exercised cannot be doubted. The impugned judgment does not expressly refer to that provision. In the circumstances of the case, it is evident that the High Court exercised the power in the light of that provision. Furthermore, we are also of the opinion that having regard to the overall circumstances, the impugned judgment does not call for interference in exercise of special leave jurisdiction (which is available to this Court – even at the stage of final hearing).

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

Explanation:
0[ds]11. It is evident from the above discussion that the respondent, in the first suit, claimed possession on the basis of the registered sale deed, Ex.P-1. That document is not denied. The rival case set-up in defence by the appellants as well as the claim in the second suit was that Ex.P-1 was nominal and in fact meant as a security; the appellants also contended that the suit land were to be re-conveyed after receiving full payment of ?9000, which was in effect made over to the respondent. It is a matter of record that the appellants had applied for and were granted occupancy rights under the Karnataka Land Reforms Act. On the order of the Land Tribunal, the respondent was dispossessed. The Tribunals order was set aside by the High Court which remanded the application for reconsideration afresh. In the second round, the Tribunal relegated the parties to the Civil Court. In these circumstances, the two suits were filed.12. The trial court rejected the appellants defence and decreed the suit, disbelieving the agreement to sell (Ex.D-3). Its conclusions were based upon several reasons. As noted previously, Ex.D-3 neither spelled out the details of the suit lands, nor did it state any payment of interest, as was the position too by the appellants. Furthermore, the trial court also examined the documentary evidence in the form of the application for occupancy rights which clearly disclosed the respondents as owners and claimed that the appellants were tenants under them. Lastly, it was held that the writings on Ex.D-3 which was allegedly executed on the same day as Ex.P-1 (the admitted sale deed) were not the same. The respondent had denied Ex.D-3. The first appellate court faulted the trial court for not believing Ex.D-3 and proceeded to hold that it was genuine. The substantial question of law framed by the High Court was with respect to the interpretation of Ex.D-3 by the first appellate court.13. The impugned judgment has recounted the reasons which persuaded the trial court to reject Ex.D-3 and approved them. At the same time, the High Court found fault with the first appellant court in ignoring the important reasons, which were rooted in the facts of the case, based upon the record which had resulted in rejection of Ex.D-3 and the decree for possession. The appellants theme song is that in second appeal, the High Court could not have interfered with what are termed as pure findings of fact. It is submitted that an examination of Ex.D-3 cannot be termed as substantial question of law, but rather amounts to pure appreciation of facts.16. In the judgment reported as Municipal Committee, Hoshiarpur v. Punjab State Electricity Board (2010) 13 SCC 216 ,  this court held as follows:26. Thus, it is evident that Section 103 CPC is not an exception to Section 100 CPC nor is it meant to supplant it, rather it is to serve the same purpose. Even while pressing Section 103 CPC in service, the High Court has to record a finding that it had to exercise such power, because it found that finding (s) of fact recorded by the court (s) below stood vitiated because of perversity. More so, such power can be exercised only in exceptional circumstances and with circumspection, where the core question involved in the case has not been decided by the court(s) below.27. There is no prohibition on entertaining a second appeal even on a question of fact provided the court is satisfied that the findings of fact recorded by the courts below stood vitiated by non-consideration of relevant evidence or by showing an erroneous approach to the matter i.e. that the findings of fact are found to be perverse. But the High Court cannot interfere with the concurrent findings of fact in a routine and casual manner by substituting its subjective satisfaction in place of that of the lower courts. (Vide Jagdish Singh v. Natthu Singh [(1992) 1 SCC 647] ; Karnataka Board of Wakf v. Anjuman-E-Ismail Madris-Un-Niswan [(1999) 6 SCC 343]  and Dinesh Kumar v. Yusuf Ali [(2010) 12 SCC 740] .)28. If a finding of fact is arrived at by ignoring or excluding relevant material or by taking into consideration irrelevant material or if the finding so outrageously defies logic as to suffer from the vice of irrationality incurring the blame of being perverse, then the finding is rendered infirm in the eye of the law. If the findings of the Court are based on no evidence or evidence which is thoroughly unreliable or evidence that suffers from the vice of procedural irregularity or the findings are such that no reasonable person would have arrived at those findings, then the findings may be said to be perverse. Further if the findings are either ipse dixit of the Court or based on conjecture and surmises, the judgment suffers from the additional infirmity of non-application of mind and thus, stands vitiated. (Vide Bharatha Matha v. R. Vijaya Renganathan [(2010) 11 SCC 483] 17. In a recent judgment of this court, Narayan Sitaramji Badwaik (Dead) Through Lrs. v Bisaram & Ors 2021 SCC OnLine SC 319 this court observed as follows, in the context of High Courts jurisdiction to appreciate factual issues under Section 103 IPC:11. A bare perusal of this section clearly indicates that it provides for the High Court to decide an issue of fact, provided there is sufficient evidence on record before it, in two circumstances. First, when an issue necessary for the disposal of the appeal has not been determined by the lower Appellate Court or by both the Courts below. And second, when an issue of fact has been wrongly determined by the Court(s) below by virtue of the decision on the question of law under Section 100 of the Code of Civil Procedure.18. In the opinion of this court, in the present case, the High Court recorded sound and convincing reasons why the first appellate courts judgment required interference. These were entirely based upon the evidence led by the parties on the record. The appreciation of evidence by the first appellate court was on the basis of it having overlooked material facts, such as appreciation of documentary and oral evidence led before the trial court, that the execution of Ex.D-3 was denied. In these circumstances, the burden was upon the appellants to establish that the registered sale deed was a nominal document. The findings of the trial court –as was duly noticed by the High Court recorded five cogent reasons why the appellants pleas could not be accepted. The deposition with respect to repayment of ? 9000/- apart from being bereft of particulars, was also contrary to the provisions inasmuch as there was no averment with respect to payment of interest @ 15%. Furthermore, the appellants application for occupancy rights made after the sale deed and the alleged agreement to sell were executed claimed that the appellants were tenants under the respondent. Eventually, the order of the Land Tribunal was set aside; upon remand the Land Tribunal was of the opinion that it did not have the jurisdiction to decide the issue and left it to the trial court to do so. These important aspects appeared to have been not appreciated – and their import were overlooked. As a consequence, the first appellate court fell into error in overlooking important evidence and appreciating the record in its true perspective and reversed the decree of the trial court. Moreover, the High Court, in second appeal proceeded to examine the documents in light of the evidence led and corrected the findings as it were under Section 103. If the appellants arguments were to prevail, the findings of fact based upon an entirely erroneous appreciation of facts and by overlooking material evidence would necessarily have to remain and bind the parties, thereby causing injustice. It is precisely for such reasons that the High Courts are empowered to exercise limited factual review under Section 103 CPC. However, that such power could be exercised cannot be doubted. The impugned judgment does not expressly refer to that provision. In the circumstances of the case, it is evident that the High Court exercised the power in the light of that provision. Furthermore, we are also of the opinion that having regard to the overall circumstances, the impugned judgment does not call for interference in exercise of special leave jurisdiction (which is available to this Court – even at the stage of final hearing).