Allahabad High Court

High Courts possess limited inherent review power under Section 11 to correct procedural lapses, not substantive findings.

M/S Transrail Lighting Ltd. Through Vikas Kumar, Authorised Representative vs Madhyanchal Vidyut Vitran Nigam Ltd., Through Its Managing Director, And Another

Allahabad High CourtJUDGMENT: May 14, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner approached the High Court under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator.

Source reference: para. 1

On 17.07.2025 and 07.08.2025, the Court appointed a nominee arbitrator for the Respondents, resulting in a three-member Arbitral Tribunal.

Source reference: para. 1, 5

Subsequently, the Petitioner moved an application for recall/review of these orders, contending that "Special Conditions of Contract" (SCC), which prescribed a Sole Arbitrator for claims under Rs. 25 Crores, were inadvertently overlooked during the original proceedings.

Source reference: para. 4, 6

The Petitioner argued that the SCC novated the General Conditions of Contract (GCC) which originally provided for a three-member panel.

Source reference: para. 4

The Respondents challenged the maintainability of the review, noting that the Tribunal was already fully constituted and the petitioner had participated in the process.

Source reference: para. 9-11
02

Issues

1. Whether the High Court, in exercise of its powers under Section 11(6) of the Arbitration and Conciliation Act, 1996, can review its order which may have the impact of terminating the mandate of an Arbitral Tribunal.

Source reference: para. 16
03

Law Applied

The Court observed that the Arbitration and Conciliation Act, 1996, does not expressly confer the power of review upon a "Court" as defined in Section 2(e).

Source reference: para. 17, 20

As a "Court of Record" under Article 215 of the Constitution of India, the High Court possesses inherent power to recall/review orders to prevent a miscarriage of justice or correct grave errors.

Source reference: para. 20-21

Review is limited to procedural lapses and cannot be used to revisit findings of law or interpretation of agreements once the Court becomes functus officio.

Source reference: para. 22

Under Section 4 (Waiver) and Section 10 (Number of Arbitrators) of the Act, the composition of the tribunal is a derogable provision.

Source reference: para. 31(vi)-(viii)
04

Reasoning

The Court reasoned that while it has inherent power under Article 215, the threshold for its exercise is significantly higher than standard review grounds under the CPC.

Source reference: para. 24, 28

The Petitioner itself had pleaded for a three-member tribunal in its original petition and nominated its own arbitrator under the GCC.

Source reference: para. 31(i)-(ii)

Both parties had consented to and participated in the formation of the three-member panel, thereby waiving their right to object to the composition under Section 4 of the Act.

Source reference: para. 31(iv), (vii)

Section 11 is intended to trigger arbitration, not create multiple stages of judicial reconsideration.

Source reference: para. 22

Since the Petitioner failed to raise the SCC defense during the initial hearing and the Tribunal was already functional, the "artificial apprehension" of future challenges did not constitute a "serious error" or "miscarriage of justice" required for a constitutional review.

Source reference: para. 31(xi), 32
05

Holding

The Court answered the issue in the negative regarding the facts of the case, holding that the application fell short of the high pedestal required for exercising inherent powers under Article 215.

Once the appointment is made, it becomes functus officio, and parties cannot "re-enter through the back door" to terminate a lawfully constituted mandate.

Source reference: para. 22, 32

The applications for condonation of delay and recall/review were dismissed.

Source reference: para. 33
Allahabad High Court

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M/S Transrail Lighting Ltd. Through Vikas Kumar, Authorised RepresentativevsMadhyanchal Vidyut Vitran Nigam Ltd., Through Its Managing Director, And Another

Allahabad High Court · May 14, 2026

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