Bombay High Court
RBL BANK LIMITEDversusVIJAY BALARAM CHOUGULE
- Decided
- Disposal
- WITHDRAWN
- Bench
- RAJESH S PATIL
Holding
The arbitral award dated 18 September 2021 is declared void‑ab‑initio and non‑executable.
Summary
The applicant RBL Bank filed an execution application based on an arbitral award dated 18 September 2021. The award was challenged on the ground that the arbitrator had been appointed unilaterally, rendering the award void. Citing the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India, the court held that an award can be set aside at the execution stage if the appointment is void. Accordingly, the court declared the award non‑existent in law, non‑executable and void‑ab‑initio, and ordered the execution application to be withdrawn. The parties were permitted to initiate fresh arbitration proceedings, with the period spent in the earlier arbitration excluded from the limitation period.
Issues considered
- Whether an arbitral award is enforceable when the arbitrator was appointed unilaterally
- Whether an arbitral award can be set aside at the execution stage on the ground of void appointment
- Effect of the void award on the pending execution application
- Limitation period for initiating fresh arbitration after withdrawal of the award
Subjects
- Arbitration
- Arbitral award
- Void ab initio
- Execution proceedings
- Unilateral appointment
- Limitation period
- Fresh arbitration
Judgment
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501 - IA 1259 OF 2022.doc
KANCHAN
Digitally
signed by
KANCHAN
VINOD
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
VINOD MAYEKAR
MAYEKAR Date:
2026.01.28
18:20:06
+0530
ORDINARY ORIGINAL CIVIL JURISDICTION
INTERIM APPLICATION NO. 1259/2022
IN
EXECUTION APPLICATION (L) NO. 8776/2022
RBL BANK LIMITED ….. APPLICANT
IN THE MATTER BETWEEN
RBL BANK LIMITED ….. APPLICANT
VS
VIJAY BALARAM CHOUGULE ….. RESPONDENT
Adv. Keertana Nair i/b. GNP Legal 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
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501 - IA 1259 OF 2022.doc
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 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 September, 2021 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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