Time and again, the Supreme Court of India in G. Saraswathi v. Rathinammal, (2018) 3 SCC 340 has emphasized on the Courts the need to pass reasoned order in every case which must contain the narration of the bare facts of the case of the parties to the lis, the issues arising the case, the submissions urged by the parties, the legal principles applicable to the issues involved and the reasons in support of the findings on all the issues in support of its conclusion.
A bench comprising of Justice R.K. Agarwal and Justice Abhay Manohar Sapre said that it is really unfortunate that the Division Bench failed to keep in mind this principle while disposing of the appeal and passed a cryptic and unreasoned order.
Such order undoubtedly caused prejudice to the parties because it deprived them to know the reasons as to why one party has won and other has lost.
"We can never countenance the manner in which such order was passed by the High Court which has compelled us to remand the matter to the High Court for deciding the appeal afresh on merits."
the bench said.
Essential ingredients of judgment in Second Appeal / Letters patent appeal
1. Factual narration of case as set up by parties.
2. Findings of two lower courts as to how they dealt with issues arising in their respective jurisdiction.
3. Arguments advanced by parties in light of applicable legal principles.
4. Discussion, appreciation, reasons and categorical findings on issues as to why findings of two lower courts be upheld or reversed.
5. Application of judicial mind.
6. Passing of reasoned order as parties must know as to why one of them won and other lost.
In absence of these principles, exercise of power is contrary to Order 41 Rule 31 of the Code of Civil Procedure, 1908.
In the instant case, the Apex Court opinioned that the disposal of the LPA by the Division Bench of the High Court cannot be said to be in conformity with the requirements of Order 41 Rule 31 of the Code of Civil Procedure, 1908

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