Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 1425 of 2016, Judgment Date: Feb 12, 2016



                                                                  Reportable
                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO.1425 OF 2016
                    (ARISING OUT OF SLP(C) NO.21125/2015)


U.P.S.R.T.C.                                                    Appellant(s)


                             VERSUS


Km. Mamta & Ors.                                              Respondent(s)



                               J U D G M E N T


Abhay Manohar Sapre, J.
1)    Leave granted.
2)    This appeal is filed by  the  defendant/appellant-Corporation  against
the judgment/order dated 28.05.2014 passed by  the  Division  Bench  of  the
High Court of Allahabad in First Appeal from Order No. 1681 of  2014,  which
in turn, arises out of  an  Award  dated  18.02.2014  passed  by  the  Motor
Accident Claim Tribunal/District Judge (in short ‘the  Tribunal’),  Hathras,
Uttar Pradesh in MACT No. 131 of 2010.
3)    In order to appreciate the short issue involved in this appeal, it  is
necessary to state a few relevant facts:
4)    The respondents-Claimant(Plaintiffs)  filed  a  Claim  Petition  under
Sections 140 and  166 of the Motor Vehicles Act, 1988 (in  short  ‘the  M.V.
Act’)  against  the  appellant-Corporation  before  the  Tribunal,   Hathras
claiming compensation to the tune of Rs.36,35,880/- for  the  death  of  one
Raj Kumar Gautam, who died  in  a  vehicular  accident.   According  to  the
respondents, on 22.09.2010, Raj Kumar Gautam-the  deceased  while  going  on
his Motor Cycle bearing No. UP-86F-9224 on Hathras-Agra road  near  a  place
called ‘Ghas Mandi’ was hit by the appellant’s bus bearing Registration  No.
UP-14-AB-9038.
5)    It was, inter alia,  alleged that the  offending  bus  was  coming  on
wrong side with high speed and hit the motor cycle, which was  being  driven
by the deceased, on the right side of the road.  The deceased who  was  aged
49 years sustained extensive injuries and later succumbed  to  the  injuries
which  gave  rise  to  the  filing  of  the  claim  petition  by  his  legal
representatives (respondents herein) claiming compensation for the  untimely
death of Raj  Kumar  Gautam.   The  respondents  also  pleaded  the  details
regarding loss of  income  and  other  particulars  necessary  for  claiming
compensation in the claim petition.
6)    The appellant-Corporation filed written statement  and  contested  the
claim petition.  One of the  grounds  taken  in  the  defence  was  that  of
contributory negligence on the part of the deceased also while  driving  the
motor cycle which resulted in the accident.
7)    The Tribunal, by award dated  18.02.2014,  partly  allowed  the  claim
petition and awarded a total sum of Rs.24,73,252/- along with interest @  6%
p.a. from date of filing till its realization to the respondents.
8)    Challenging the said Award, the appellant-Corporation filed an  appeal
before the High Court.  By impugned order  dated  28.05.2014,  the  Division
Bench of the High Court dismissed the appeal and upheld  the  award  of  the
Tribunal.
9)    Against the said  order,  the  appellant-Corporation  has  filed  this
appeal by way of special leave.
10)   Learned Counsel for  the  appellant-Corporation  while  assailing  the
legality and correctness of the  impugned  order  contended  that  the  High
Court without adverting to all the factual details  and  grounds  raised  in
the appeal, disposed of  the  appeal  in  a  cryptic  manner.  According  to
learned counsel, the High Court neither set out the facts,  nor  dealt  with
any issue, nor appreciated  the  ocular  and  documentary  evidence  in  its
proper perspective, nor examined the  legal  principles  applicable  to  the
issues arising in the case and nor  rendered  its  findings  on  contentious
issues decided by the Tribunal though urged by the appellant in  support  of
the appeal.
11)   Learned counsel further contended that it was the  duty  of  the  High
Court exercising its first appellate powers under Section 173  of  the  M.V.
Act to  have  dealt  with  all  the  submissions  urged  by  the  appellant-
Corporation and after appreciating the entire evidence should have  come  to
its own  conclusion  one  way  or  the  other  keeping  in  view  the  legal
principles governing the issues.  It was urged that since it  was  not  done
by the High Court, a jurisdictional error is committed  by  the  High  Court
which renders the  impugned  judgment  legally  unsustainable.  Lastly,  the
learned counsel urged that if his arguments are accepted, the remand of  the
case to the High Court to decide the appeal afresh on merits is inevitable.
12)   Learned counsel for the respondents, however, supported  the  impugned
order and urged that it does not call for any interference.
13)   Having heard the learned counsel for the parties  and  on  perusal  of
the record of the case, we find force  in  the  submission  of  the  learned
counsel for the appellant-Corporation.
14)   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 integra.
15)   As far back in 1969, the learned Judge – V.R. Krishna Iyer, J (as  His
Lordship then was the judge of Kerala High Court) while deciding  the  first
appeal under Section 96 of the CPC in Kurian Chacko vs. Varkey  Ouseph,  AIR
1969 Kerala 316, reminded the first appellate court of its  duty  to  decide
the first appeal. In his distinctive style of writing with subtle  power  of
expression, the learned judge held as under:
“1. The plaintiff, unsuccessful in two Courts, has come  up  here  aggrieved
by the dismissal of his suit which was one  for  declaration  of  title  and
recovery of possession. The defendant disputed the plaintiff's title to  the
property as also his possession and claimed both  in  himself.  The  learned
Munsif, who tried the suit, recorded findings against the plaintiff both  on
title  and  possession.  But,  in  appeal,  the  learned  Subordinate  Judge
disposed of the whole matter glibly and briefly, in a few sentences.
2. An appellate court is the final Court of fact ordinarily and therefore  a
litigant is entitled to a full and fair  and  independent  consideration  of
the evidence at the appellate stage. Anything less than this  is  unjust  to
him and I have no doubt that in the present  case  the  learned  Subordinate
Judge has fallen far short of what  is  expected  of  him  as  an  appellate
Court. Although there  is  furious  contest  between  the  counsel  for  the
appellant and for the respondent, they appear  to  agree  with  me  in  this
observation…..”
                             (Emphasis supplied)

16)   This Court also in various cases reiterated  the  aforesaid  principle
and laid down the powers of the appellate Court  under  Section  96  of  the
Code while deciding the first appeal.
17)   We consider it apposite to refer to some of the decisions.
18)   In Santosh Hazari vs. Purushottam Tiwari (Deceased) by L.Rs. (2001)  3
SCC 179, this Court held (at pages 188-189) as under:
“.……..the  appellate  court  has  jurisdiction  to  reverse  or  affirm  the
findings of the trial court.  First  appeal  is  a  valuable  right  of  the
parties and unless restricted by law, the whole case  is  therein  open  for
rehearing both on questions of fact and law. The judgment of  the  appellate
court must, therefore, reflect its conscious application of mind and  record
findings supported by reasons, on all the  issues  arising  along  with  the
contentions put forth, and pressed  by  the  parties  for  decision  of  the
appellate court……while reversing a finding of fact the appellate court  must
come into close quarters with the reasoning assigned by the trial court  and
then assign its own reasons for arriving at a different finding. This  would
satisfy the court hearing a further appeal that the  first  appellate  court
had discharged the duty expected of it…………”

19)   The above view was followed by a three-Judge Bench  decision  of  this
Court in Madhukar & Ors. v. Sangram & Ors.,(2001) 4 SCC 756, wherein it  was
reiterated that sitting as a court of first appeal, it is the  duty  of  the
High Court to deal with all the issues and the evidence led by  the  parties
before recording its findings.
20)   In H.K.N. Swami v. Irshad Basith,(2005) 10 SCC 243, this Court (at  p.
244) stated as under: (SCC para 3)
“3. The first appeal has to be decided on facts as well as on  law.  In  the
first appeal parties have the right to be heard both on questions of law  as
also on facts and the first appellate court is required  to  address  itself
to all issues and decide the case  by  giving  reasons.  Unfortunately,  the
High Court, in the present case has  not  recorded  any  finding  either  on
facts or on law. Sitting as the first appellate court it  was  the  duty  of
the High Court to deal with all the issues  and  the  evidence  led  by  the
parties before recording the finding regarding title.”

21)   Again in Jagannath v. Arulappa & Anr., (2005) 12 SCC 303, while
considering the scope of Section 96 of the Code of Civil Procedure, 1908,
this Court (at pp. 303-04) observed as follows: (SCC para 2)
“2. A court of first appeal can reappreciate the entire  evidence  and  come
to a different conclusion……...”

22)   Again in B.V Nagesh & Anr. vs. H.V. Sreenivasa Murthy, (2010)  13  SCC
530, this Court taking note of all  the  earlier  judgments  of  this  court
reiterated the aforementioned principle with these words:
“3. How the regular first appeal is to  be  disposed  of  by  the  appellate
court/High Court has been considered by this  Court  in  various  decisions.
Order 41 CPC deals with appeals from original  decrees.  Among  the  various
rules, Rule 31 mandates that the  judgment  of  the  appellate  court  shall
state:

(a) the points for determination;
(b) the decision thereon;
(c) the reasons for the decision; and
(d) where the decree appealed from is reversed  or  varied,  the  relief  to
which the appellant is entitled.

4. The appellate court has jurisdiction to reverse or  affirm  the  findings
of the trial court. The first appeal is a valuable right of the parties  and
unless restricted by law, the whole case is therein open for rehearing  both
on questions of fact and law. The judgment  of  the  appellate  court  must,
therefore, reflect its conscious application of  mind  and  record  findings
supported by reasons, on all the issues arising along with  the  contentions
put forth, and pressed by the parties for decision of the  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.”

23)   The  aforementioned  cases  were  relied  upon  by  this  Court  while
reiterating the same principle in State Bank of India  &  Anr.  vs.  Emmsons
International Ltd. & Anr., (2011) 12 SCC 174.
24)   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 Company Ltd. vs. Naresh Kumar & Ors. ((2000) 10  SCC
198 and State of Punjab & Anr. vs. Navdeep Kuur & Ors. (2004) 13 SCC 680].
25)   Coming now to  the  facts  of  the  case  in  hand,   we  consider  it
appropriate to reproduce the whole order of the High Court infra:
“The only ground urged is that there was  contributory  negligence  also  on
the part of the deceased and  therefore,  the  compensation  awarded  should
have been reduced proportionately.  We have perused the  site  plan  and  we
find that the accident occurred  on  a  crossing.   The  site  plan  clearly
indicates that the offending vehicle namely the Bus was on  the  right  side
of the road left no scope for the deceased who was  traveling  on  the  left
side of the road.  Consequently, we are of the opinion  that  there  was  no
contributory negligence on the part of the deceased at  the  time  when  the
accident occurred.  The appeal fails and is dismissed.’

26)   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,
nor dealt with any of the submissions urged, nor took note  of  the  grounds
raised by the appellant 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 to find out as to whether the  award of the Tribunal  is
legally sustainable or not and if so, how, and if not, why?
27)   As observed supra, as a first appellate Court, it was the duty of  the
High Court to have decided the appeal keeping in view the  powers  conferred
on it by the statute. The impugned judgment also does not, in  our  opinion,
satisfy the requirements of Order XX Rule 4 (2) read with Order XLI Rule  31
of the Code which requires that judgment shall contain a  concise  statement
of the case, points for determination, decisions thereon  and  the  reasons.
It is for this reason, we are unable to uphold the impugned judgment of  the
High Court.
28)   The appeal thus succeeds and  is  accordingly  allowed  in  part.  The
impugned judgment is set aside.
29)   As a necessary consequence, the case is remanded  to  the  High  Court
for deciding the appeal afresh on merits, keeping in view the  principle  of
law laid down by this Court quoted above.
30)   However, we make it clear that we have not applied  our  mind  to  the
merits of the issues involved in the case and hence  the  High  Court  would
decide the appeal strictly in accordance with law on merits uninfluenced  by
our observations. Needless to observe, the  High  Court  will  do  so  after
affording an opportunity of hearing to both the  parties.   We  request  the
High Court to decide the appeal preferably within six months. No costs.


                                                                           .                        

                                      ……...................................J.
                                                            [J. CHELAMESWAR]


                                      ………..................................J.
                                                       [ABHAY MANOHAR SAPRE]
      New Delhi,
      February 12, 2016.
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