In Brief
Canara Nidhi Limited sought to overturn a High Court order that had allowed the respondents to adduce additional evidence in proceedings to set aside an arbitral award under Section 34 of the Arbitration and Conciliation Act. The Supreme Court held that while Section 34 applications are summary proceedings and the aggrieved party may prove grounds for challenge, additional evidence may only be admitted in exceptional cases with clear justification. The Court found that the respondents had not made out any exceptional grounds and that permitting evidence would amount to a retrial on the merits. The appeal was allowed and the District Judge's dismissal of the application was affirmed.
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