Railways Board, Ministry Of Railways vs Titagarh Rail Systems Limited

ik-146364031 Delhi High Court 26 February 2026 • 16 min read

Judges (1)

Avneesh Jhingan Delivered

Counsel (10)

Aanchal Mullick Counsel Respondent Akhil Sibbal Counsel Respondent Aradhya Chaturvedi Counsel Petitioner Daksh Arora Counsel Respondent Husain Taqvi Counsel Petitioner Nishtah Jain Counsel Petitioner Rishi Agarwal Counsel Respondent Shashank Garg Counsel Petitioner Shubhi Agarwal Counsel Respondent Vidhi Gupta Counsel Petitioner

Parties (2)

Railways Board, Ministry of Railways Petitioner Titagarh Rail Systems Limited Respondent

Case Significance

Railways Board, Ministry Of Railways vs Titagarh Rail Systems Limited is a Delhi High Court decision dated February 26, 2026 (citation: ik-146364031). The Railways Board challenged an arbitral award under Section 34 of the Arbitration Act in a dispute over a Rs 499 crore contract for manufacture and supply of BCNAHSM1 wagons, where the Railways had short-closed the contract, cancelled 390 wagons, and forfeited the bank guarantee. The Court found that the arbitrator, a serving employee of the Railways, was appointed in violation of Section 12(5) read with Schedule VII of the Act, making the appointment void ab initio. Applying the Supreme Co The case was heard by Justice Avneesh Jhingan.

Summary

The Railways Board challenged an arbitral award under Section 34 of the Arbitration Act in a dispute over a Rs 499 crore contract for manufacture and supply of BCNAHSM1 wagons, where the Railways had short-closed the contract, cancelled 390 wagons, and forfeited the bank guarantee. The Court found that the arbitrator, a serving employee of the Railways, was appointed in violation of Section 12(5) read with Schedule VII of the Act, making the appointment void ab initio. Applying the Supreme Court's ruling in Bhadra International, the award was set aside as a nullity since participation in proceedings cannot constitute waiver of the right to object to the arbitrator's appointment.

What was the outcome of Railways Board, Ministry Of Railways vs Titagarh Rail Systems Limited?

The Railways Board challenged an arbitral award under Section 34 of the Arbitration Act in a dispute over a Rs 499 crore contract for manufacture and supply of BCNAHSM1 wagons, where the Railways had ...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (ik-146364031)