Bombay High Court
KOTAK MAHINDRA BANK LIMITEDversusNEWTON CHEMICALS AND 3 ORS.
- Decided
- Disposal
- DISMISSED
- Bench
- RAJESH S PATIL
Holding
The arbitral award dated 27 May 2019 is declared void ab initio and non‑executable.
Summary
The applicant, Kotak Mahindra Bank Ltd., filed an execution application based on an arbitral award dated 27 May 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 (Civil Appeal No. 37‑38 of 2026) 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in law, granted leave to withdraw the execution application, and ordered the application to be disposed of as withdrawn. The parties were permitted to initiate fresh arbitration proceedings, with the period spent on the earlier arbitration excluded from the limitation clock.
Issues considered
- Whether an arbitral award where the arbitrator was appointed unilaterally can be set aside as void ab initio at the execution stage.
- Whether the execution application based on such an award may be withdrawn and the parties allowed to commence fresh arbitration.
- Effect of the arbitration proceedings on the limitation period for initiating fresh arbitration.
Legislation cited
Subjects
- Arbitration
- Arbitral award
- Void ab initio
- Unilateral appointment
- 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
VINOD MAYEKAR
MAYEKAR Date:
2026.01.21
19:18:14
ORDINARY ORIGINAL CIVIL JURISDICTION
+0530
EXECUTION APPLICATION NO. 53/2020
M/S. KOTAK MAHINDRA BANK LIMITED ….. APPLICANT
VERSUS
NEWTON CHEMICALS AND 3 ORS. ….. 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) Ms. Gogri, 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
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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 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 May, 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.)
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