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Bombay High Court

SHRIRAM CITY UNION FINANCE LIMITEDversusJAIN DILIP SAKAL CHAND

Decided
Disposal
WITHDRAWN

Holding

The arbitral award is declared non‑est in law, non‑executable and void ab initio.

Summary

The applicant, Shriram City Union Finance Ltd., filed an execution application to enforce an arbitral award against Jain Dilip Sakal Chand. 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 defective. The court also referred to its earlier judgment in L&T Finance Ltd. v. Sangeeta Bhansali. Accordingly, the court granted leave to withdraw the execution application, declared the award non‑enforceable and void ab initio, and ordered the application dismissed. The parties were permitted to commence fresh arbitration proceedings, with the period of the earlier arbitration excluded for limitation purposes.

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 voidness
  • Whether the execution application should be withdrawn and the award declared void

Subjects

  • Arbitration
  • Arbitral award
  • Unilateral appointment
  • Void ab initio
  • Execution proceedings
  • Limitation period
  • Fresh arbitration

Judgment

Vivekanand
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                                                             25-N-574-2025.doc



             IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                ORDINARY ORIGINAL CIVIL JURISDICTION

                      NOTICE NO. 574 OF 2025
                                IN
                EXECUTION APPLICATION NO. 1310/2018

SHRIRAM CITY UNION FINANCE
LIMITED                                             ….. APPLICANT

          VERSUS

JAIN DILIP SAKAL CHAND                              ….. RESPONDENT

Mr. Vishal Narkar, Advocate for the Applicant.

                                 CORAM : RAJESH S. PATIL, J.

                                 DATE     : 17th FEBRUARY, 2026

P.C. :-

1)             Mr. Narkar, 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, 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
Vivekanand
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                                                             25-N-574-2025.doc


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 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, Notice & 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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