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Supreme Court of India 2018-12-04 allowed

Municipal Corporation of Greater Mumbai & Anr vs Pratibha Industries Ltd. & Ors

Bench: 2 — R.F. Nariman

In Brief

A water meter supply tender contract contained two dispute resolution clauses: Clause 13 explicitly stated "No Arbitration is allowed," while Clause 22 provided for in-house committee decisions with court jurisdiction. During hearing, the High Court appointed an arbitrator based on consent records by the parties' counsel. The MCGM later sought recall, alleging the representative lacked authority. The Supreme Court held that High Courts, as constitutional courts of record, possess inherent power to recall their orders independently of the Arbitration Act. Since no valid arbitration agreement existed—only in-house procedures and court jurisdiction—the Act did not apply, and recall was proper. The Division Bench judgment was reversed.</summary_100> </invoke>

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Arbitration and Conciliation Civil Procedure High Court Powers Constitutional Law

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