Does a Second Appeal Lie When There Is No Substantial Question of Law? — Reaffirmation of Section 100 CPC Threshold and Fact-Finding Restraint

The Court once again holds that in the absence of any substantial question of law, no interference under Section 100 CPC is warranted; upholds existing precedent on the limited scope of second appellate jurisdiction over concurrent findings of fact relating to unproven earnest money and unclear sale transaction—authoritatively binding on subordinate courts in Punjab and Haryana.

 

Summary

Category Data
Case Name RSA/1034/2022 of NISHAN SINGH Vs GURDEEP BEDI @ GURDEEP SINGH BEDI AND ORS
CNR PHHC010308812022
Date of Registration 12-05-2022
Decision Date 28-10-2025
Disposal Nature DISMISSED
Judgment Author MRS. JUSTICE ALKA SARIN
Court High Court of Punjab and Haryana
Precedent Value Binding authority for subordinate courts in Punjab and Haryana on Section 100 CPC issues
Overrules / Affirms Affirms concurrent findings of Trial Court and First Appellate Court
Type of Law Civil Procedure (Section 100 CPC), Specific Performance, Refund of Earnest Money
Questions of Law Whether, absent a substantial question of law, a second appeal is maintainable under Section 100 CPC.
Ratio Decidendi
  • The High Court reaffirmed that a second appeal under Section 100 CPC can only be entertained if a substantial question of law arises.
  • Mere disagreement with factual findings of the lower courts does not warrant interference.
  • Where the agreement to sell is unclear regarding payment terms and earnest money, and where claimed payments are unsupported by evidence, the High Court will not disturb the concurrent findings dismissing the suit.
  • In the present case, no substantial question of law arose, and there was no basis for refund when the agreement was silent on material terms.
  • The findings of the courts below were based on evidence and required no interference.
Logic / Jurisprudence / Authorities Relied Upon by the Court Application of Section 100 CPC—requirement of a substantial question of law; limits on interference with concurrent findings of fact.
Facts as Summarised by the Court
  • Plaintiff claimed he was entitled to specific performance (or refund) based on an agreement to sell land, alleging payment of Rs.85,78,000 as earnest money, though the agreement was silent on this sum.
  • The lower courts dismissed his suit for want of credible evidence and unexplained inconsistencies, including his failure to explain why only a lower refund was sought in the plaint versus what was allegedly paid.
  • The appellate challenge was limited to the refund, not specific performance.
  • Both courts held against the plaintiff, and no substantial question of law was found on appeal.

Practical Impact

Category Impact
Binding On All subordinate courts in Punjab and Haryana
Persuasive For Other High Courts in India, subject to their own precedents on Section 100 CPC
Follows Binding application of statutory restriction under Section 100 CPC

What’s New / What Lawyers Should Note

  • Reaffirms that the High Court cannot interfere in second appeals unless a substantial question of law distinctly arises.
  • Clarifies that agreements silent on material terms (such as earnest money) and unsupported by evidence are fatal to claims for refund or specific performance.
  • Even in appeals limited to alternative relief (such as refund), strict proof is required; mere admission of an agreement is insufficient if key terms are ambiguous.
  • A clear and consistent case theory, backed by documentary evidence, is essential for relief in suits for specific performance or refund of earnest money.

Summary of Legal Reasoning

  • The Court emphasized the restrictive scope of Section 100 of the Civil Procedure Code, permitting second appeals only where substantial questions of law are at stake.
  • Examined the pleadings and evidence, finding the agreement to sell silent on alleged earnest money of Rs.85,78,000 and lacking cogent evidence for the amounts claimed.
  • Noted internal inconsistency in the plaintiff’s case regarding the refund amount sought versus the amount allegedly paid.
  • Held that both the Trial Court and First Appellate Court’s findings were factual and consistent with the evidence; no error of law was demonstrated.
  • Determined that in the face of clear concurrent findings of fact that are supported by record and reasoning, the High Court has no scope for interference.
  • Concluded that no substantial question of law arose, warranting dismissal of the second appeal.

Arguments by the Parties

Petitioner (Plaintiff-Appellant):

  • Contended that the agreement to sell was admitted; therefore, refund of earnest money was due.
  • Asserted error in lower courts’ refusal to grant refund relief.

Respondent (Defendant-Respondent No.1 and Others):

  • Disputed rate and terms of sale; denied readiness and willingness of plaintiff to perform contract.
  • Asserted that plaintiff did not attend the Registrar’s office on due date.
  • Claimed that plaintiff had cancelled the agreement and received his amounts via subsequent writing.
  • Defendant-Respondent Nos.3-5: Claimed bona fide purchaser status without notice.

Factual Background

The plaintiff originally owned land that he sold to Defendant No.1. Subsequently, Defendant No.1 allegedly agreed to sell the land back to the plaintiff under an agreement dated 04.12.2007, reaffirmed on 23.06.2008, with alleged earnest money payments, though the agreement was silent on the specific sum. The plaintiff claimed readiness and willingness to perform, but asserted that Defendant No.1 sold the land to others instead. The trial and first appellate courts found crucial terms unproven and dismissed the suit. The second appeal was limited to seeking refund, not specific performance.

Statutory Analysis

  • Section 100 CPC was construed narrowly: second appeals are maintainable only on substantial questions of law, not merely to re-examine facts.
  • The Court followed the established statutory restriction against interference with concurrent factual findings by trial and first appellate courts.

Dissenting / Concurring Opinion Summary

No dissenting or concurring opinions were recorded in the judgment provided.

Procedural Innovations

No procedural innovations or new guidelines were introduced or elaborated upon in the judgment.

Alert Indicators

  • ✔ Precedent Followed – The judgment reaffirms and applies the established, narrow approach to Section 100 CPC second appeals and the sanctity of concurrent factual findings by lower courts.

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