Shriram City Union Finance Limited vs Shaikh Naseem — Bombay HC (2026) — LawSathi Research

Shriram City Union Finance Limited vs Shaikh Naseem — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Leave and liberty to withdraw the execution application granted with liberty to initiate fresh arbitration; the Arbitral Award declared non-est in law, non-executable and void-ab-initio; execution application disposed of as withdrawn; Notice and Interim Applications disposed of; parties free to commence fresh arbitration with the period from invocation till the order excluded for limitation.

Issue for consideration

Whether the claimant should be granted leave to withdraw the execution application, with liberty to initiate fresh arbitration proceedings, where the arbitrator's appointment was unilateral. +2 more

Court's answer

Leave and liberty to withdraw the execution application, with liberty to initiate fresh arbitration proceedings, is granted as prayed for.

Ratio / Principle

The Arbitral Award which is the subject matter of the execution proceedings is declared to be non-est in law, non-executable and void-ab-initio.

Key takeaways

It is open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶30
For the purpose of initiating fresh arbitration proceedings, the period from the invocation of the arbitration till the date of this order shall stand excluded for limitation.ratio¶31

Detailed headnote1 paragraphs

High Court of Judicature at Bombay (Ordinary Original Civil Jurisdiction), Rajesh S. Patil, J. — Execution Application No. 263 of 2019 with Notice No. 219 of 2025, Shriram City Union Finance Ltd. (Claimant) v. Shaikh Naseem (Respondent); decision dated 17th March, 2026. The execution proceedings arose out of an Arbitral Award whose arbitrator had been appointed unilaterally. Relying on the Supreme Court's decision of 5 January 2026 in Bhadra International (India) Pvt. Ltd. and others v. Airport Authority of India, Civil Appeal No. 37-38 of 2026 (that even at the stage of execution an arbitral award can be set aside as void-ab-initio where the arbitrator's appointment was unilateral), and on the Judge's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali & Anr., Commercial Execution Application (L) No. 5277 of 2022, the court granted leave and liberty to withdraw the execution application; declared the Arbitral Award non-est in law, non-executable and void-ab-initio; disposed of the application as withdrawn along with the Notice and Interim Applications; permitted the parties to initiate fresh arbitration proceedings; and directed that the period from the invocation of the arbitration till the date of the order stand excluded for limitation purposes for the fresh arbitration.

Vivekanand

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19-EXA-263-2019.doc

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

EXECUTION APPLICATION NO. 263 OF 2019 WITH NOTICE NO. 219 OF 2025 IN

EXECUTION APPLICATION NO. 263 OF 2019

Shriram City Union Finance LTD.

….. Claimant

Versus

Shaikh Naseem ….. Respondent

Mr. Vishal V. Narkar, Advocate for the Claimant.

CORAM : RAJESH S. PATIL, J.

DATE : 17^th MARCH, 2026

P.C. :-

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.

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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19-EXA-263-2019.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.

1. 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.

1. Execution Application stands disposed of as withdrawn.

1. In sequel, Notice & the Interim Applications, if any, also stand disposed of.

It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.

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.)