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Bombay High Court

SHRIRAM TRANSPORT FINANCE COMPNAY LIMITEDversusYASIN HAJILAL MUJAWAR AND ANR

Decided
Disposal
DISPOSED OFF

Holding

The arbitral award dated 27 January 2020 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 27 January 2020. The award was challenged on the ground that the arbitrator had been appointed unilaterally, rendering the appointment void. Relying on the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (2026) and the High Court’s earlier judgment in L&T Finance Ltd. v. Sangeeta Bhansali (2022), the Court held that an award can be set aside at the execution stage if the arbitrator’s appointment is invalid. Consequently, the award was declared void‑ab‑initio and non‑executable, and the execution application was withdrawn. The Court also permitted the parties to initiate fresh arbitration proceedings, excluding the period already spent in the earlier 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  • Whether the execution application can be withdrawn and the award declared non‑executable.
  • Effect of the void award 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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                                                                                       95 - EXA 2132 OF 2022.doc



          Digitally signed
          by KANCHAN
                                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
KANCHAN VINOD
        MAYEKAR
VINOD   Date:
MAYEKAR 2026.01.28
          13:09:39
                                               ORDINARY ORIGINAL CIVIL JURISDICTION
          +0530


                                               EXECUTION APPLICATION NO. 2132/2022

                             SHRIRAM TRANSPORT FINANCE
                             COMPANY LIMITED                                      ….. APPLICANT

                                       VS

                             YASIN HAJILAL MUJAWAR & ANR.                         ….. RESPONDENTS

                             Adv. Rutika Kazale i/b. Adv. Vaibhav V. Ugle 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
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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 27 January, 2020 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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