M/S. Canara Nidhi Limited vs M. Shashikala

The Supreme Court addressed the issue of whether parties can adduce evidence under Section 34(2) of the Arbitration and Conciliation Act, 1996 to prove specified grounds for setting aside an arbitral award. The Court held that the High Court's direction to allow the respondents to file affidavits and cross-examine witnesses was justified, as it aligned with the principles established in Fiza Developers v. AMCI (2009) 17 SCC 796. The Court concluded that the District Judge's refusal to permit additional evidence was erroneous, thereby upholding the High Court's decision.