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Issues: Whether, in proceedings under Section 34 of the Arbitration and Conciliation Act, 1996, the parties can ordinarily be permitted to adduce fresh evidence and cross-examine witnesses to establish the grounds for setting aside the arbitral award.
Analysis: Proceedings under Section 34 are summary in nature and the enquiry is confined to the grounds specifically prescribed for setting aside an award. The record before the arbitral tribunal ordinarily supplies the material for deciding the application, and the procedure should not be converted into a regular trial. While affidavits may be used to place matters before the Court where necessary, cross-examination is not to be allowed as a matter of course and can be permitted only in exceptional situations. The party seeking additional evidence must show a specific necessity for it; a vague assertion of hardship or a general desire to lead further evidence is insufficient. Where the arbitral proceedings already contained oral and documentary evidence on the disputed issues, allowing a retrial would defeat the statutory object of speedy disposal.
Conclusion: Fresh evidence and cross-examination were not warranted on the facts, and the order refusing such permission was upheld.
Ratio Decidendi: An application under Section 34 of the Arbitration and Conciliation Act, 1996 is ordinarily to be decided on the arbitral record, and additional oral evidence or cross-examination may be permitted only on a clear showing of exceptional necessity.