Bombay High Court
SHRIRAM CITY UNION FINANCE LIMITEDversusJAIN DILIP SAKAL CHAND
- Decided
- Disposal
- WITHDRAWN
- Bench
- RAJESH S PATIL
Holding
The arbitral award is declared void‑ab‑initio and non‑executable, and the execution application is withdrawn, allowing fresh arbitration proceedings.
Summary
The High Court considered an execution application filed by Shriram City Union Finance Ltd. based on an arbitral award whose arbitrator had been appointed unilaterally. The applicant sought to withdraw the execution proceeding and obtain liberty to commence fresh arbitration. Relying on the precedent in L&T Finance Ltd. v. Sangeeta Bhansali (2022) and the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (2026), the Court held that an award can be set aside as void‑ab‑initio at the execution stage when the appointment is unilateral. Consequently, the award was declared non‑existent and non‑executable, the execution application was withdrawn, and the parties were permitted to start new arbitration proceedings, with the period spent in the earlier arbitration excluded from limitation calculations.
Issues considered
- Can an arbitral award be set aside as void‑ab‑initio at the execution stage on the ground of unilateral appointment of the arbitrator?
- Whether the execution application may be withdrawn and the parties be allowed to initiate fresh arbitration proceedings?
- How does the period spent in the earlier arbitration affect the limitation period for initiating fresh arbitration?
Subjects
- Arbitration
- Execution of award
- Void award
- Unilateral appointment
- Limitation period
- Fresh arbitration
Judgment
Vivekanand
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25-N-574-2025.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
NOTICE NO. 574 OF 2025
IN
EXECUTION APPLICATION NO. 1310/2018
SHRIRAM CITY UNION FINANCE
LIMITED ….. APPLICANT
VERSUS
JAIN DILIP SAKAL CHAND ….. RESPONDENT
Mr. Vishal Narkar, Advocate for the Applicant.
CORAM : RAJESH S. PATIL, J.
DATE : 17th FEBRUARY, 2026
P.C. :-
1) Mr. Narkar, 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
Vivekanand
2/2
25-N-574-2025.doc
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 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, Notice & 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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