Bombay High Court
SHRIRAM CITY UNION FINANCE LTDversusGAURAV NALINKANT BHADRESHWARA
- Decided
- Disposal
- DISPOSED OFF
- Bench
- RAJESH S PATIL
Holding
The arbitral award is declared void ab initio and non‑executable because the arbitrator was appointed unilaterally.
Summary
The claimant filed an execution application based on an arbitral award, contending that the arbitrator had been appointed unilaterally. The claimant sought leave to withdraw the execution proceeding and to commence fresh arbitration. The Court, relying on the precedent of L&T Finance Ltd. v. Sangeeta Bhansali and the Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India, held that an award can be set aside at the execution stage if the arbitrator’s appointment was unilateral. Accordingly, the Court declared the award void‑ab‑initio, non‑enforceable, and ordered the execution application to be withdrawn. It further permitted the parties to initiate new arbitration proceedings, excluding the period already spent in arbitration from the limitation clock.
Issues considered
- Whether an arbitral award is void ab initio and can be set aside at the execution stage on the ground of unilateral appointment of the arbitrator.
- Whether the execution application can be withdrawn and the parties be allowed to commence fresh arbitration proceedings.
Subjects
- Arbitration
- Arbitral award
- Void ab initio
- Unilateral appointment
- Execution of award
- Limitation
- Fresh arbitration
Judgment
Vivekanand
1/2
41-N-701-2025.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
NOTICE NO. 701 OF 2025
IN
EXECUTION APPLICATION NO. 1804/2022
SHRIRAM CITY UNION FINANCE
LTD ….. CLAIMANT
VERSUS
GAURAV NALINKANT
BHADRESHWARA ….. RESPONDENT
Adv. Vishal V. Narkar, Advocate for the Claimant.
CORAM : RAJESH S. PATIL, J.
DATE : 20th 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
2/2
41-N-701-2025.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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