Appellate remand for unresolved factual controversy where essential remittances issue was never decided on the record.

Where a material factual issue essential to disposal of an appeal has not been adjudicated, an appellate tribunal may remand the matter for fresh findings so that the controversy is properly determined. The text explains that if the record does not show whether the remittances covered by two notices were common, that unresolved fact must be tried by the adjudicating authority with evidence and reasons. It further notes that a quasi-judicial appellate forum has incidental power to remand in aid of natural justice, and that procedural principles consistent with Order 41 CPC may be applied for that limited purpose.

---

---

Issues: Whether the Appellate Tribunal could remand the matter to the adjudicating authority for determination of the factual question whether the two remittances covered by the first show-cause notice were also included in the second show-cause notice, and whether the absence of findings on that point required such remand.

Analysis: The impugned order did not decide the essential factual controversy as to whether the remittances mentioned in the two notices were common. That question was material to a correct decision of the appeal and required evidence and findings. The Tribunal also noted that an appellate forum exercising quasi-judicial powers has incidental authority to remand where relevant facts have not been properly examined. Section 28(1) of the Foreign Exchange Management Act, 1999 requires the Tribunal to act according to natural justice, and the procedural approach in Order 41 of the Code of Civil Procedure, 1908 was held to be consistent with that framework for the limited purpose of remand.

Conclusion: The matter was remanded to the adjudicating authority for trial of the framed issue and for recording findings and reasons after considering additional evidence, if necessary.

Final Conclusion: The appeal was not decided on merits and the factual controversy was sent back for fresh determination by the adjudicating authority.

Ratio Decidendi: Where a material factual issue essential to the disposal of an appeal has not been adjudicated by the original authority, the appellate tribunal may remand the matter for fresh findings if such course is necessary to secure natural justice and a proper decision.

---