Bombay High Court
AXIS BANK (FORMERLY KNOWN AS UTI BANK LTD.)versusBUNTY MANOHARMAL BAFNA
- Decided
- Disposal
- DISPOSED OFF
- Bench
- RAJESH S PATIL
Holding
An arbitral award is void‑ab‑initio and non‑executable if the arbitrator was appointed unilaterally, even at the execution stage.
Summary
The applicant, Axis Bank, filed an execution application based on an arbitral award, contending that the award was issued after a unilateral appointment of the arbitrator. The applicant sought leave to withdraw the execution proceedings and to start fresh arbitration. The court, relying on the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeal No. 37‑38 of 2026), held that an arbitral award can be set aside as void‑ab‑initio at the execution stage if the arbitrator’s appointment was unilateral. Consequently, the court declared the award non‑existent, non‑executable, and void, and granted the applicant’s request to withdraw the execution application. The execution application and related interim applications were disposed of, and the parties were permitted to initiate new arbitration proceedings, with the period from the original arbitration’s commencement excluded for limitation purposes.
Issues considered
- Whether an arbitral award can be set aside as void‑ab‑initio at the execution stage on the ground of unilateral appointment of the arbitrator.
- Whether the execution application based on such an award should be withdrawn and the parties allowed to commence fresh arbitration.
Subjects
- Arbitration
- Arbitral award
- Unilateral appointment
- Void ab initio
- Execution of award
- Limitation period
- Fresh arbitration
Judgment
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8 - EXA 1892 OF 2022.doc
Digitally signed
by KANCHAN
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
KANCHAN VINOD
MAYEKAR
VINOD Date:
MAYEKAR 2026.04.20
15:55:52
+0530 ORDINARY ORIGINAL CIVIL JURISDICTION
EXECUTION APPLICATION NO. 1892/2022
ALONGWITH
INTERIM APPLICATION NO. 2769/2021
ALONGWITH
NOTICE NO. 671/2025
IN
EXECUTION APPLICATION NO.1892/2022
AXIS BANK (FORMERLY KNOWN AS
UTI BANK LTD.) …… APPLICANT
VS
BUNTY MANOHARMAL BAFNA ….. RESPONDENT
Adv. Bijal Gogri i/b. O M Gujar Law Chambers for the Applicant.
CORAM : RAJESH S. PATIL, J.
DATE : 18 APRIL, 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)
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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 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/Notice, 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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