VidhiSangh

Supreme Court of India · 04/12/2018

MUNICIPAL CORPORATION OF GREATER MUMBAI & ANR. versus PRATIBHA INDUSTRIES LTD. & ORS.

[2018] 14 S.C.R. 1143 · 2018 INSC 1151

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court upheld the High Court’s power to recall an arbitrator’s appointment made during a Section 9 hearing on an unauthorised municipal officer’s consent. The contractual clauses provided internal dispute resolution, not arbitration, and the officer could not create a separate arbitration agreement. As no arbitration agreement arose, the Arbitration Act’s restriction on judicial intervention did not apply. Interim protection against encashment continued for four weeks to permit recourse to the appropriate forum.

Issues

  1. Whether the contractual internal dispute process constituted an arbitration agreement.
  2. Whether an unauthorised officer’s consent supported the appointment.
  3. Whether the High Court could recall the appointment notwithstanding the Arbitration Act.

Provisions considered

Held

Result

Appeal disposed of by setting aside the Division Bench judgment. Interim order dated 23 June 2017 continued for four weeks.

Judgment PDF: Supreme Court of India, [2018] 14 S.C.R. 1143.