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FAO(OS)(COMM).225/2018 Page 11 of 16
74.Before parting with this judgment, we are constrained to
note that, in case after case, we find that factual findings, in
respect of which the learned Arbitral Tribunal is the final
authority, are being successively challenged, under Section
34 and thereafter, under Section 37 of the Act. This has
effectively reduced the exercise of arbitration to the civil trial,
and petitions under Sections 34 and 37 of the Act to first
appeals and second appeals. In fact, while second appeals
under Section 100 of the Civil Procedure Code, 1908, would
lie only on questions of law, we find that arbitral awards are
being challenged, even on facts, under Section 37 of the Act.
Despite wealth of judicial authority on this point, and repeated
disapproval voiced by the Supreme Court and as well as
several High Courts including this Court thereon, it is almost
invariably seen that every award passed by the
arbitrator/Arbitral Tribunal, especially, where the awards are
commercial in nature, are challenged, first before the Single
Judge and thereafter before the Division Bench merely
because the "aggrieved party" possess the financial
wherewithal to do so. It is a matter of concern that the majority
of such challenges are by public sector undertakings, the
appellant before us being one of the main contributors thereto.
Such attempts contribute, in a great deal to the menace of
"docket explosion", which plagues our Courts and consumes
valuable time which could be used for settling more important
disputes. We unhesitatingly deprecate this practice.