Bombay High Court
INTEGRO FINSERV PRIVATE LIMITEDversusINDIRASEN RAMKRISHNA GUPTA (BORROWER) AND LOVEKUMAR B. VARMA (GUARANTOR)
- Decided
- Disposal
- DISPOSED OFF
- Bench
- RAJESH S PATIL
Holding
The arbitral award dated 13 October 2016 is declared non‑est in law, non‑executable and void‑ab‑initio.
Summary
The applicant sought to withdraw an execution proceeding that was based on an arbitral award dated 13 October 2016, arguing that the arbitrator had been appointed unilaterally. The court, relying on its earlier decision in L&T Finance Ltd. v. Sangeeta Bhansali and the Supreme Court’s recent ruling in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India, held that an award can be set aside as void‑ab‑initio if the arbitrator’s appointment was unilateral. Consequently, the award was declared non‑existent in law and non‑executable. The execution application and related interim applications were ordered withdrawn. The court granted leave for the parties to initiate fresh arbitration proceedings and excluded the period already spent in arbitration from the limitation clock for any new proceedings.
Issues considered
- Whether an arbitral award is enforceable when the arbitrator was appointed unilaterally.
- Whether execution of such an award can proceed.
- Effect of the arbitral proceedings on the limitation period for initiating fresh arbitration.
Subjects
- arbitration
- arbitral award
- unilateral appointment
- void ab initio
- execution proceedings
- limitation period
- fresh arbitration
Judgment
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KANCHAN
Digitally signed
by KANCHAN
VINOD
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
VINOD MAYEKAR
MAYEKAR Date:
2026.01.28
09:50:24 +0530 ORDINARY ORIGINAL CIVIL JURISDICTION
CHAMBER SUMMONS NO. 722/2017
IN
EXECUTION APPLICATION NO. 646/2018
INTEGRO FINSERV PRIVATE LIMITED ….. APPLICANT
IN THE MATTER BETWEEN
INTEGRO FINSERV PRIVATE LIMITED ….. ORG. CLAIMANT/
DECREE HOLDER
VERSUS
INDIRASEN RAMKRISHNA GUPTA
(BORROWER) AND
LOVEKUMAR B. VARMA (GUARANTOR) ….. RESPONDENTS
ALONGWITH
INTERIM APPLICATION NO. 1864/2019
IN
EXECUTION APPLICATION NO. 646/2018
CFM ASSET RECONSTRUCTION PRIVATE
LIMITED ….. APPLICANT
IN THE MATTER BETWEEN
L & T FINANCE LIMITED ….. ORG. CLAIMANT/
DECREE HOLDER
VERSUS
INDIRASEN RAMKRISHNA GUPTA
(BORROWER) AND
LOVEKUMAR B. VARMA (GUARANTOR) ….. RESPONDENTS
Adv. Gaurav Jain i/b. DS Law for the Applicant.
CORAM : RAJESH S. PATIL, J.
DATE : 23 JANUARY, 2026
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P.C. :-
1) Learned counsel appearing for the claimant submits that
the execution proceedings arise out of an Arbitral Award, where the
Arbitrator’s appointment was unilateral. Hence, he on instructions of
his client seeks leave to withdraw the present execution application,
with liberty to initiate fresh arbitration proceedings.
2) I have taken a view in the judgment of L & T Finance Ltd.
vs. Sangeeta Bhansali & Anr. in Commercial Execution Application (L)
No. 5277 of 2022, considering the latest judgment of the Supreme
Court decided on 5 January, 2026, in the matter of Bhadra
International (India) Pvt. Ltd. and others vs. Airport Authority of
India, Civil Appeal No. 37-38 of 2026, wherein it has been held that
even at the stage of execution, an arbitral award can be set aside
being void-ab-initio on the grounds that the appointment of the
arbitrator was unilateral.
3) Leave and liberty as prayed for, is granted.
3.1) The Arbitral Award dated 13 October, 2016 which is
subject matter of the present proceedings is hereby declared to be
non-est in law, non-executable and void-ab-initio.
4) Execution Application alongwith Chamber Summons
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stand disposed of as withdrawn.
5) In sequel, the Interim Applications, if any, also stand
disposed of.
6) It shall be open for the parties to initiate fresh arbitration
proceedings in accordance with law.
7) As far as limitation is concerned, the period from the
invocation of the arbitration till today shall stand excluded for the
purpose of initiating fresh arbitration proceedings.
(RAJESH S. PATIL, J.)
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