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Bombay High Court

TATA CAPITAL FINANCIAL SERVICES LIMITEDversusKRYSTAL TRANSPORT SERVICES

Decided
Disposal
DISPOSED OFF

Holding

The execution proceedings were held to be non est due to lack of jurisdiction, and the court allowed the applications to be withdrawn.

Summary

Tata Capital Financial Services Ltd filed execution and interim applications against Krystal Transport Services. The court noted that the Supreme Court in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeals Nos. 37‑38 of 2026) held that an arbitral award is void ab initio if the arbitrator is unilaterally appointed, rendering any decree passed by a court lacking jurisdiction non est. Consequently, the execution proceedings were deemed void, and the applicant was allowed to withdraw the applications. The court granted leave to withdraw, ordered the applications disposed, and indicated that fresh arbitration may be initiated, with the limitation period excluded for any new proceedings. The interim applications were also disposed of as withdrawn.

Issues considered

  • Whether execution proceedings can continue when the underlying arbitral award is void due to lack of jurisdiction.
  • Whether a decree passed by a court without jurisdiction is non est and renders subsequent execution proceedings void.
  • Whether the parties may withdraw the execution and interim applications in view of the Supreme Court judgment.

Subjects

  • arbitration
  • arbitrator appointment
  • void award
  • jurisdiction
  • execution proceedings
  • limitation
  • withdrawal

Judgment

           Digitally signed
           by MAYUR
MAYUR      KONDIRAM
KONDIRAM   ADANE
ADANE      Date:
           2026.08.21
           17:38:28 +0530

                                                                                      506-EXA-147-2025 (OS).doc



                                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                               ORDINARY ORIGINAL CIVIL JURISDICTION


                                          EXECUTION APPLICATION NO. 147 OF 2025
                                                                 WITH
                                           INTERIM APPLICATION NO. 2469 OF 2023


                              Tata Capital Financial Services Limited                    ...Applicant
                                      Versus
                              Krystal Transport Services                                 ...Respondent
                                                              __________

                              Adv. Bijal Gogri, i/b O M Gujar Law Chambers, for the Applicant.
                                                              __________

                                                        CORAM : ADVAIT M. SETHNA, J.

                                                        DATE      :    21st AUGUST 2026

                              P.C.:

                              1.      Not on board. Taken on board in terms of the praecipe dated 21
                              August 2026.

                              2.      Heard Ms. Gogri, learned counsel for the Applicant in the
                              proceedings. From the record, it appears that the proceedings are covered
                              by the judgment of the Supreme Court in the case of Bhadra International
                              (India) Pvt. Ltd. and Others v. Airport Authority of India , Civil Appeal
                              Nos. 37-38 of 2026. The Supreme Court has held therein that an arbitral
                              award can be set aside as being void ab initio on the ground that the
                              arbitrator was unilaterally appointed.

                              3.      According to the Supreme Court, a decree passed by a Court
                              without jurisdiction goes to the root of the matter. Any decision passed by
                      Mayur                                                                           Page 1 of 2
                                                                 506-EXA-147-2025 (OS).doc


        a Court lacking jurisdiction would be coram non judice, since a Court
        cannot confer jurisdiction upon itself. No act of the parties can cure an
        inherent lack of jurisdiction. In view thereof, all the proceedings, including
        the execution proceedings, are rendered non est. The issue therefore is no
        longer res integra.

        4.    In light of the above, learned counsel for the Applicant seeks leave
        to withdraw the present Applications.

        5.    Leave is granted accordingly to withdraw the said proceedings.
        6.    However, it would be open to the parties to initiate fresh arbitration
        proceedings, if necessary, in accordance with law.

        7.    As far as the issue of limitation is concerned, the period
        commencing from the date of invocation of arbitration until the date of
        this order shall stand excluded, in the event fresh proceedings are initiated
        by the parties.

        8.    With the above observations and directions, the Application stand
        Disposed of as withdrawn.

        9.    Consequently, the Interim Applications, if any, also stand Disposed
        of accordingly.


                                                [ADVAIT M. SETHNA, J.]




Mayur                                                                            Page 2 of 2


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