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Bombay High Court

SHRIRAM TRANSPORT FINANCE COMPANY LTD.versusMOHD. ABID NASEEM QURESHI (PROP. ISA TOURS TRAVELS) AND ANR.

Decided
Disposal
DISPOSED OFF

Holding

The arbitral award dated 28 January 2022 is declared void ab initio and non‑executable.

Summary

The applicant, Shriram Transport Finance Co. Ltd., filed an execution application based on an arbitral award dated 28 January 2022. The award was challenged on the ground that the arbitrator had been appointed unilaterally, rendering the award void ab initio. Relying on the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India and the earlier judgment in L&T Finance Ltd. v. Sangeeta Bhansali, the court held that an award can be set aside even at the execution stage for such a defect. Consequently, the court declared the award non‑existent in law, ordered the execution application to be withdrawn, and allowed the parties to initiate fresh arbitration proceedings, excluding the time spent in the earlier arbitration from the limitation period.

Issues considered

  • Whether an arbitral award can be set aside at the execution stage on the ground of unilateral appointment of the arbitrator.
  • Whether the award dated 28 January 2022 is void ab initio and therefore non‑executable.

Subjects

  • arbitration
  • arbitral award
  • void ab initio
  • unilateral appointment
  • execution
  • limitation period
  • fresh arbitration

Judgment

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        Digitally
        signed by                IN THE HIGH COURT OF JUDICATURE AT BOMBAY
        KANCHAN
KANCHAN VINOD
VINOD   MAYEKAR
MAYEKAR Date:                       ORDINARY ORIGINAL CIVIL JURISDICTION
        2026.01.22
        11:17:59
        +0530

                                    EXECUTION APPLICATION NO. 1195/2022

                     SHRIRAM TRANSPORT FINANCE
                     COMPANY LTD.                                        ….. APPLICANT

                               VERSUS

                     MOHD. ABID NASEEM QURESHI
                     (PROP. ISA TOURS TRAVELS) AND
                     ANR.                                                ….. RESPONDENTS

                     Adv. Neelkanth D. Gadge i/b. Adv. Narayan Awate for the Applicant.

                     None for the Respondents.

                                                      CORAM : RAJESH S. PATIL, J.

                                                      DATE     : 17 JANUARY, 2026

                     P.C. :-

                     1)            Mr. Gadge, 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
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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 28 January, 2022 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 stands 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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