Bombay High Court
IA/1382/2019 of L AND T FINANCE LIMITED Vs
- Decided
- Disposal
- DISPOSED OFF
- Bench
- RAJESH S PATIL
Holding
The arbitral award is declared void ab initio and non‑executable.
Summary
L&T Finance Ltd filed an execution application to enforce an arbitral award against Khajappa Shinde, alleging that the arbitrator had been appointed unilaterally. The applicant sought to withdraw the execution proceedings and start fresh arbitration. The Court, relying on its earlier decision in L&T Finance Ltd. v. Sangeeta Bhansali and the Supreme Court’s ruling in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (2026), held that an award can be set aside at the execution stage if the arbitrator’s appointment was unilateral. Consequently, the award dated 27 September 2016 was declared void ab initio, non‑executable, and the execution application and related interim applications were disposed of. The Court granted leave to the parties to initiate fresh arbitration and excluded the period of limitation for doing so.
Issues considered
- Whether the arbitral award dated 27 September 2016 is valid despite the unilateral appointment of the arbitrator.
- Whether the execution proceedings should be continued or withdrawn in view of the alleged defect in appointment.
- Whether the limitation period bars the initiation of fresh arbitration proceedings.
Subjects
- Arbitration
- Arbitral award
- Unilateral appointment
- Void ab initio
- Execution proceedings
- Limitation period
- Fresh arbitration
Judgment
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KANCHAN
Digitally signed
by KANCHAN
VINOD
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
VINOD MAYEKAR
MAYEKAR Date:
2026.01.28
09:50:28 +0530 ORDINARY ORIGINAL CIVIL JURISDICTION
CHAMBER SUMMONS NO. 721/2017
IN
EXECUTION APPLICATION NO. 647/2018
L AND T FINANCE LIMITED ….. APPLICANT
VERSUS
KHAJAPPA SHINDE (BORROWER) & ANR. ….. RESPONDENTS
ALONGWITH
INTERIM APPLICATION NO. 1382/2019
IN
EXECUTION APPLICATION NO. 647/2018
CFM ASSET RECONSTRUCTION PRIVATE
LIMITED ….. APPLICANT
IN THE MATTER BETWEEN
L AND T FINANCE LIMITED …..ORG. CLAIMANT/
DECREE HOLDER
VERSUS
KHAJAPPA SHINDE (BORROWER) & ANR. ….. RESPONDENTS/
JUDGMENT DEBTORS
Adv. Gaurav Jain i/b. DS Law 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, he on instructions of
his client seeks leave to withdraw the present execution application,
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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
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 September, 2016 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 alongwith Chamber Summons
stand 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
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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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