Additional evidence in first appeal must be decided before disposal; ignoring the application can cause miscarriage of justice.

An appellate court must decide a properly filed application for additional evidence under Order XLI Rule 27 CPC before finally disposing of the first appeal. The power to admit additional evidence is discretionary, but it must be exercised judicially under Section 107 CPC, especially because the first appellate court is the final court on facts and evidence. Ignoring such an application, particularly where the proposed material may be necessary and the explanation for its production requires consideration, can result in miscarriage of justice. The High Court erred by dismissing the appeal without addressing the application, so the judgment was set aside and the matter remitted for fresh disposal in accordance with law.

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Issues: (i) Whether the High Court could dismiss the first appeal without deciding the application for permission to adduce additional evidence under Order XLI Rule 27 of the Code of Civil Procedure.

Analysis: Section 107 of the Code of Civil Procedure permits the appellate court to take additional evidence subject to the conditions in Order XLI Rule 27. The power is discretionary, but it must be exercised judicially. The first appellate court, being the final court on facts and evidence, cannot ignore a properly filed application for additional evidence and decide the appeal without considering whether the proposed material is necessary and whether the explanation for its production is satisfactory. Failure to deal with such an application may cause miscarriage of justice.

Conclusion: The High Court erred in dismissing the appeal without considering the application for additional evidence.

Final Conclusion: The appeal was allowed in part, the High Court judgment was set aside, and the matter was remitted to the High Court for fresh disposal in accordance with law.

Ratio Decidendi: An appellate court must adjudicate an application for additional evidence before finally disposing of the appeal, and it cannot ignore such an application where the proposed evidence may be material to the decision.

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