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Bombay High Court

RBL BANK LIMITEDversusVIJAY BALARAM CHOUGULE

Decided
Disposal
WITHDRAWN

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declared the award non‑existent in law, non‑executable and void‑ab‑initio, and ordered the execution application to be withdrawn.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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