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Issues: Whether the preliminary issues as framed could properly be tried and answered on the basis adopted by the Court, and whether the findings recorded on those issues should be set aside with the matter remitted for a fresh trial.
Analysis: Under Order XIV, Rule 2 of the Civil Procedure Code, a preliminary issue is intended to dispose of a pure issue of law. The issues framed in this case mixed questions of fact and law, and the supposed assumption that the plaint allegations were admitted did not make them suitable for determination as preliminary issues. The evidence led on those issues was therefore insufficient to support the findings recorded.
Conclusion: The findings on the preliminary issues were set aside, and the suit was remanded for fresh framing of issues and trial de novo, in favour of the appellant.
Final Conclusion: The appeal succeeded on a procedural ground, and the matter was sent back for determination after proper issues were framed.
Ratio Decidendi: A preliminary issue under Order XIV, Rule 2 of the Civil Procedure Code must be a pure issue of law, and it is improper to finally determine mixed or factual disputes on that basis.