Second appeal and factual findings: a court must remand or reappraise the full record before finally deciding against a party.

In second appeal, the High Court may test whether first appellate findings of fact are vitiated by non-consideration of admissible and vital evidence, but once those findings are displaced it cannot straightaway decide the dispute against a party without a fresh appraisal of the entire relevant record. If the evidence on record is sufficient, the court may itself finally determine the issue under Section 103(b) CPC after hearing both sides fully; otherwise, the proper course is remand for rehearing and fresh factual determination. The Supreme Court held that the High Court was not justified in finally dismissing the suit and set aside the judgment, directing remand for decision on the merits.

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Issues: (i) whether, in second appeal, the High Court could set aside the first appellate court's findings of fact and finally dismiss the suit without considering the entire relevant evidence; (ii) whether the matter ought to have been remanded for fresh decision or finally decided under Section 103(b) of the Code of Civil Procedure, 1908.

Issue (i): whether, in second appeal, the High Court could set aside the first appellate court's findings of fact and finally dismiss the suit without considering the entire relevant evidence.

Analysis: The first appellate court was the final court of fact. The High Court was entitled to examine whether those findings were vitiated in law for non-consideration of admissible and vital evidence. But once such findings were displaced, the High Court could not straightaway conclude against the plaintiff without a fresh appraisal of the entire relevant evidence. Setting aside factual findings did not automatically justify the opposite conclusion on the disputed issue.

Conclusion: The High Court was not justified in finally dismissing the suit on that basis.

Issue (ii): whether the matter ought to have been remanded for fresh decision or finally decided under Section 103(b) of the Code of Civil Procedure, 1908.

Analysis: After dislodging the findings of fact, the High Court had two lawful courses: remit the matter to the first appellate court for rehearing, or itself decide the issue finally if the evidence on record was sufficient under Section 103(b). If the second course was chosen, the parties had to be fully heard on the entire evidence and a proper factual determination had to be made. As that exercise was not undertaken, the appropriate course was remand.

Conclusion: The matter was required to be remanded to the first appellate court for fresh decision in accordance with law.

Final Conclusion: The impugned judgment was set aside and the appeal was allowed with remand for a fresh appellate decision on the merits.

Ratio Decidendi: In a second appeal, once findings of fact are held to be vitiated, the High Court must either remand the matter or itself determine the factual issue on the entire evidence under Section 103(b); it cannot finally decide the dispute against a party without that complete exercise.

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