Bombay High Court
SHRIRAM TRANSPORT FINANCE COMPNAY LIMITEDversusYASIN HAJILAL MUJAWAR AND ANR
- Decided
- Disposal
- DISPOSED OFF
- Bench
- RAJESH S PATIL
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 Consequently, the award was declared void‑ab‑initio and non‑executable, and the execution application was withdrawn.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- Whether the execution application can be withdrawn and the award declared non‑executable.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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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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