Filing of Cross Objections by Defendants not necessary to dispute adverse findings in a dismissed suit

The Supreme Court has observed that it is not necessary that the defendants should file cross objections to the appeal against dismissal of a suit to dispute certain findings adverse to them in the judgment appealed against.

The said ruling was held in the matter of State of Andhra Pradesh vs. B. Ranga Reddy (D) [Civil Appeal 17486 of 2016], decided on 09.08.2019.

Challenge

In the instant matter, three separate suits were filed against the defendants including the State out of which two were dismissed and one was decreed. The Trial Court, in the judgment dismissing the suits, however, answered a finding on an issue, against the state. The state filed appeal against the judgment decreeing the suit. The High Court invoking principle of Res Judicata, dismissed the appeal, holding that findings recorded on issue in the dismissed suits have to be treated as decree and would operate as res judicata.

The Appellants contended that the effect of amendment in Order XLI Rule 22 of the Code is only to enable an aggrieved person to file cross objections but that does not take away the right of an aggrieved person to support the decree of dismissal of the suit in appeal on the grounds other than what weighed with the trial court dismissing the suit

Held

The Apex Court setting aside the order of the High Court observed that there is a distinction between the decree and a finding on an issue. It is the decree against which an appeal lies in in terms of Section 96 of the Code. Decree in terms of Section 2(2) of the Code means formal expression of an adjudication conclusively determining the rights of the parties. In the present matter, the defendants-State could not file an appeal against a decree, which was of a dismissal of a suit simpliciter. The findings on Issue No. 1 against the State could be challenged by way of cross-objections in terms of amended provisions of Order XLI Rule 22 of the Code but such filing of cross-objections is not necessary to dispute the findings recorded on issues as the defendants have a right to support the ultimate decree passed by the trial court of dismissal of suit on grounds other than which weighed with the learned trial.