Shriram City Union Finance Ltd. vs Suresh Eknath Mandlik and Another — Bombay HC (2026) — LawSathi Research

Shriram City Union Finance Ltd. vs Suresh Eknath Mandlik and Another — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Execution Application disposed of as withdrawn with leave and liberty to initiate fresh arbitration proceedings; the Arbitral Award declared non-est in law, non-executable and void-ab-initio; limitation period from invocation of arbitration till the order date excluded for fresh arbitration; Notice and Interim Applications disposed of consequentially.

Issue for consideration

Whether an Arbitral Award rendered pursuant to the unilateral appointment of the Arbitrator is executable in execution proceedings, or is void-ab-initio and liable to be set aside even at the stage of execution. +1 more

Court's answer

Following the view taken 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, the Court holds that an arbitral award founded on a unilateral appointment of the Arbitrator can be set aside even at the stage of execution as void-ab-initio; accordingly, the Arbitral Award which is the subject matter of the present proceedings is declared to be non-est in law, non-executable and void-ab-initio.

Ratio / Principle

Leave and liberty is granted to the claimant/applicant to withdraw the execution application, with liberty to initiate fresh arbitration proceedings in accordance with law.

Key takeaways

The period from the invocation of the arbitration till the date of this order shall stand excluded for the purpose of initiating fresh arbitration proceedings, so as to protect the claimant on limitation.ratio¶¶22

Detailed headnote1 paragraphs

Bombay High Court, O.O.C.J. (Rajesh S. Patil, J.), 27 February 2026 — EXA/427/2018 (with N/221/2025), Shriram City Union Finance Ltd. v. Suresh Eknath Mandlik & Anr. Execution proceedings arising out of an Arbitral Award in which the Arbitrator's appointment was unilateral. Following the Supreme Court's judgment in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeal No. 37-38 of 2026, decided 5 January 2026) and the Court's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali (Com. Ex. Appl. (L) No. 5277 of 2022), the Court held that even at the stage of execution an arbitral award can be set aside as void-ab-initio on the ground of unilateral appointment of the Arbitrator, and declared the award non-est in law, non-executable and void-ab-initio. Leave was granted to withdraw the execution application with liberty to initiate fresh arbitration; the period from invocation of arbitration till the order date stands excluded for limitation; the Notice and Interim Applications were disposed of consequentially.

2026:BHC-OS:5433

Diksha Rane 33 EXA 427 2018.doc

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

33 EXA/427/2018 WITH N/221/2025 IN EXA/427/2018

SHRIRAM CITY UNION FINANCE LTD. VS SURESH EKNATH MANDLIK AND ANOTHER

Adv. Vishal Narkar for the applicant.

CORAM : RAJESH S. PATIL, J. DATE : 27 FEBRUARY 2026.

P.C. :

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 International (India) Pvt. Ltd. and others vs. Airport Authority

1

Diksha Rane 33 EXA 427 2018.doc

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, the Notice and 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.)

2

Signed by: Diksha Rane Designation: PS To Honourable Judge Date: 27/02/2026 18:08:34