Surat Singh (Dead) v. Siri Bhagwan & Ors.
Background
Murti Devi had sued to have a decree obtained against her by Siri Bhagwan declared null and void as fraudulent; she lost at trial but won on first appeal. During the pendency of Siri Bhagwan's second appeal in the Punjab & Haryana High Court, the appellant Surat Singh purchased the disputed land from Murti Devi and was added as a party-respondent to protect his interest. The High Court ultimately allowed Siri Bhagwan's second appeal (reviving the original decree against Murti Devi) without hearing Surat Singh, and then dismissed his application to recall that judgment.
Decision Breakdown
The Supreme Court found two independent, fatal flaws in the High Court's handling of the case: first, it decided the second appeal without giving Surat Singh, a party on record, any hearing, and wrongly refused his application to reopen the matter for that purpose; second, and more fundamentally, the High Court never framed a "substantial question of law" at the admission stage as Section 100 CPC mandatorily requires, only formulating one for the first time in the concluding paragraph of its final judgment: a sequence the Court held defeats the very purpose of the provision, since respondents are entitled to know and respond to the specific legal question on which the appeal is being heard. Because both defects go to the root of the High Court's jurisdiction to decide the second appeal at all, the Supreme Court set aside the High Court's judgment and remanded the second appeal to be heard completely afresh, with a properly framed substantial question of law and with Surat Singh given his opportunity to be heard. The Court expressly clarified that it had not examined the merits of the underlying property/fraud dispute and asked the High Court to decide the matter, uninfluenced by its observations, preferably within six months given the case's age.
Lesson Learnt
A second appeal under Section 100 CPC can only be decided on a "substantial question of law" that the High Court must formulate at the admission stage (so all parties know what is actually being argued): a High Court that skips this and only states the question for the first time in its final judgment, or that decides a case without hearing an interested party on record, acts without jurisdiction and its judgment can be set aside on that basis alone, regardless of the merits.