Bombay High Court
HDFC BANK LTD.versusCHANDU DADARAO CHOUDHARY AND ANR
- Decided
- Disposal
- DISPOSED OFF
- Bench
- RAJESH S PATIL
Holding
The arbitral award dated 18 April 2019 is declared void ab initio, non‑existent in law and non‑executable.
Summary
The High Court considered an execution application filed by HDFC Bank Ltd. based on an arbitral award dated 18 April 2019. 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 recent 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 Consequently, the Court declared the award non‑existent in law, ordered the execution application to be withdrawn, and allowed the parties to commence fresh arbitration proceedings, excluding the period already spent in arbitration from the limitation clock.
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 18 April 2019 is void ab initio and therefore non‑executable.
- Effect of the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India on pending execution proceedings.
- Whether the period spent in the earlier arbitration should be excluded for limitation purposes in initiating fresh arbitration.
Subjects
- Arbitration
- Arbitral award
- Unilateral appointment
- Void ab initio
- Execution of award
- Limitation
- Fresh arbitration
Judgment
KVM
1/2
52 - EXA 1860 OF 2022.doc
Digitally signed
by KANCHAN
KANCHAN VINOD
MAYEKAR
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
VINOD Date:
MAYEKAR 2026.01.28
12:29:18
+0530
ORDINARY ORIGINAL CIVIL JURISDICTION
EXECUTION APPLICATION NO. 1860/2022
HDFC BANK LTD. ….. APPLICANT
VS
CHANDU DADARAO CHOUDHARY ….. RESPONDENT
Adv. Bijal Gogri i/b. O M Gujar Law Chambers for the Applicant.
CORAM : RAJESH S. PATIL, J.
DATE : 23 JANUARY, 2026
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, she on instructions of
her 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
KVM
2/2
52 - EXA 1860 OF 2022.doc
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 18 April, 2019 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.)
Checking your session…
Lawyer court records for this case
Associated through the court’s case reference.