Arbitration agreement absent where contract only set out internal dispute review and expressly barred arbitration; recall of appointment upheld.

A contractual clause expressly negating arbitration and another providing only an internal municipal decision mechanism do not constitute an arbitration agreement. Appointment of a sole arbitrator based merely on the municipal officer's acquiescence was therefore without authority, especially where no proper application for appointment under the contract had been made. A High Court, as a court of record, has inherent power to recall its own order to correct an order passed without authority and prevent injustice. The recall of the arbitral appointment was upheld and the contrary appellate order was set aside.

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Issues: Whether the High Court had inherent power, as a court of record, to recall its earlier order appointing a sole arbitrator, and whether the contractual clauses relied upon constituted an arbitration agreement.

Analysis: The clauses in the tender and contract were not arbitration clauses. One clause expressly stated that no arbitration was allowed, while the other provided only an internal mechanism for decision by municipal officers and did not amount to an agreement to arbitrate. The appointment of the retired Judge as sole arbitrator had been made only because the municipal representative present in court had no objection, but that officer was not empowered to consent to arbitration. No application had been made under the relevant provision for appointment of an arbitrator in accordance with the contract. Independently, High Courts, being courts of record under the Constitution, possess inherent power to correct or recall their own orders to prevent injustice or correct an order passed without authority.

Conclusion: The order recalling the appointment of the sole arbitrator was valid, and the appellate order setting aside that recall was incorrect.

Final Conclusion: The impugned order was set aside and the recall of the arbitral appointment was restored, leaving the parties to pursue any appropriate remedy in accordance with law.

Ratio Decidendi: A High Court, as a court of record, has inherent power to recall an order passed without authority, and a contractual internal dispute-resolution mechanism that expressly negates arbitration does not create an arbitration agreement.

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