Natural justice in factual adjudication requires remand for fresh decision after due opportunity

Where an adjudication involving factual inquiry is found to have breached natural justice, the proper course is to set aside the order and remit the matter for fresh adjudication after giving the affected party due opportunity. The Tribunal accepted the objection limited to breach of natural justice, held that the appellate and original orders could not stand, and restored the dispute to the original authority for reconsideration on merits in compliance with procedural fairness.

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Issues: Whether the appellate order could be sustained when the adjudicating authority had allegedly violated the principles of natural justice, and whether the proper course was to remand the matter for fresh adjudication.

Analysis: The authorisation confined the departmental appeal to the single ground of breach of natural justice. The Tribunal found merit in that objection and held that, where the Collector (Appeals) concluded that the Assistant Collector had not observed natural justice and the dispute involved factual investigation, the proper course was to set aside the original adjudication and direct reconsideration afresh after giving due opportunity.

Conclusion: The issue was decided in favour of Revenue. The appellate order and the original adjudication were set aside and the matter was remitted for fresh adjudication after observance of natural justice.

Final Conclusion: The decision restored the adjudicatory process to the original authority for reconsideration on merits after compliance with procedural fairness.

Ratio Decidendi: Where breach of natural justice is found in an adjudication involving factual inquiry, the appropriate remedy is to set aside the order and direct de novo adjudication after giving due opportunity to the affected party.

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