The Bench, in the case of Nagireddy Srinivasa Rao V. Chinnari Suryanarayana led by Justice R. Raghunandan Rao ruled that an order or decision could not be reviewed on the merits unless there was some kind of procedural error, and that this was because the power of review is the product of a legislation.
The Court determined that it lacks jurisdiction to review an order issued under Section 11 of the Act since no procedure for reviewing such an order is set out in the A&C, either explicitly or implicitly.
FACTS OF THE CASE
The parties agreed to build flats on the applicants’ property by signing a contract on December 14, 2011. A disagreement between the parties prompted the respondent to make an application under Section 11 of the Act. The application was granted, and the arbitrator was selected by the Court.
JUDGEMENT BY THE COURT
In Jain Studios Ltd. v. Shin Satellite Public Co. Ltd., (2006) 5 SCC 501, the Supreme Court held that it has the authority to hear a review of a decision or order issued under Section 11 of the A&C Act. However, the High Court has no authority in this regard.
The Court therefore ruled that the ability to review a decision is not innate but rather the product of law, and that without such a provision, an order or judgement cannot be challenged on the merits unless there was a significant procedural flaw in the original decision.
The Court noted that the petitioner has not shown that the impugned decision was issued in error due to any procedural irregularity.
Based on its interpretation of the A&C, the Court has determined that it lacks jurisdiction to conduct a de novo review of a decision made under Section 11 of the Act.The Court concluded that the petition for review was without merit and so rejected it.
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Judgement reviewed by Deepa Bajaj.