Bombay High Court
MAGMA FINCORP LIMITED.versusSRISHTI MALIK AND ANR.
- Decided
- Disposal
- DISPOSED OFF
- Bench
- RAJESH S PATIL
Holding
The arbitral award is declared non‑existent in law, non‑executable and void ab initio.
Summary
Magma Fincorp Limited filed an execution application against Srishti Malik and another, seeking to enforce an arbitral award dated 28 March 2019. The learned arbitrator had been appointed unilaterally by the claimants, raising a question of procedural regularity. The court, relying on the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeal Nos. 37‑38 of 2026) and the earlier L&T Finance Ltd. v. Sangeeta Bhansali judgment, held that an award can be set aside at the execution stage if the arbitrator’s appointment was unilateral. Consequently, the award was declared non‑existent in law, non‑executable and void ab initio. The execution application and any interim applications were dismissed, and the parties were permitted to initiate fresh arbitration proceedings, with the period of the earlier arbitration excluded for limitation purposes.
Issues considered
- Whether an arbitral award can be set aside as void ab initio on the ground that the arbitrator was appointed unilaterally.
- Whether the award dated 28 March 2019 is enforceable in execution proceedings.
Subjects
- arbitration
- arbitral award
- void ab initio
- unilateral appointment
- execution
- limitation
- fresh arbitration
Judgment
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Digitally
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
signed by
KANCHAN
KANCHAN VINOD
VINOD MAYEKAR
MAYEKAR Date:
ORDINARY ORIGINAL CIVIL JURISDICTION
2026.01.21
19:18:19
+0530
EXECUTION APPLICATION NO. 51/2020
MAGMA FINCORP LIMITED ….. APPLICANT
VERSUS
SRISHTI MALIK AND ANR. ….. RESPONDENTS
Adv. Bijal Gogri i/b. O M Gujar Law Chambers for the Applicant.
CORAM : RAJESH S. PATIL, J.
DATE : 17 JANUARY, 2026
P.C. :-
1) Learned counsel appearing for the applicant submits that
she does not have any instructions in the present proceedings.
2) From the proceedings, it can be gathered that the learned
arbitrator was appointed unilaterally by the claimants.
3) 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
even at the stage of execution, an arbitral award can be set aside
being void-ab-initio on the ground that the appointment of the
arbitrator was unilateral.
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4) In view of the aforesaid judgment, the award in the
present proceedings dated 28 March, 2019 passed by the learned
arbitrator is hereby declared to be non-est in law, non-executable and
void-ab-initio.
5) Execution Application stands dismissed.
6) In sequel, the Interim Applications, if any, also stand
disposed of.
7) It shall be open for the parties to initiate fresh arbitration
proceedings in accordance with law.
8) 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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