Hdb Financial Services Limited vs Harshelle Travels and Anr. — Bombay HC (2026) — LawSathi Research

Hdb Financial Services Limited vs Harshelle Travels and Anr. — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Both Execution Applications dismissed; the arbitral awards declared non-est in law, non-executable and void-ab-initio; notices and interim applications, if any, disposed of; parties at liberty to initiate fresh arbitration in accordance with law, with the period from invocation of arbitration till the date of the order (5 February 2026) excluded for limitation purposes.

Issue for consideration

Whether the arbitral awards in EXA/411/2021 and EXA/412/2021, passed by an arbitrator appointed unilaterally by the claimants, are valid and capable of execution. +1 more

Court's answer

The arbitral awards passed in the present proceedings by the learned arbitrator, who was appointed unilaterally by the claimants, are declared to be non-est in law, non-executable and void-ab-initio, in view of the Supreme Court's judgment in Bhadra International (India) Pvt. Ltd. and the Court's earlier view in L & T Finance Ltd. vs. Sangeeta Bhansali & Anr.

Ratio / Principle

Notices and interim applications, if any, in the execution applications stand disposed of.

Key takeaways

It is open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶34
For limitation purposes, the period from the invocation of arbitration till the date of this order shall stand excluded for initiating fresh arbitration proceedings.ratio¶35

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (Rajesh S. Patil, J.), 5 February 2026 - Execution Applications 25 N/253/2025 (in EXA/411/2021, HDB Financial Services Limited vs. Harshelle Travels and Anr.) and 26 N/254/2025 (in EXA/412/2021, HDB Financial Services Limited vs. Om Enterprises and 2 Ors.): noting from the proceedings that the learned arbitrator had been appointed unilaterally by the claimants, and relying on the Court's earlier view in L & T Finance Ltd. vs. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022) and the Supreme Court's judgment dated 5 January 2026 in Bhadra International (India) Pvt. Ltd. and others vs. Airport Authority of India (Civil Appeal No. 37-38 of 2026), wherein it was 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, the Court declared the awards non-est in law, non-executable and void-ab-initio, dismissed the execution applications, disposed of the notices and interim applications, permitted the parties to initiate fresh arbitration in accordance with law, and directed that the period from invocation of arbitration till the date of the order stand excluded for limitation purposes.

Vivekanand

1/2

25 to 26 N-253-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

25 N/253/2025

In

EXA/411/2021

HDB FINANCIAL SERVICES LIMITED

VS

HARSHELLE TRAVELS AND ANR

WITH

26 N/254/2025 In

EXA/412/2021

HDB FINANCIAL SERVICES LIMITED VS

OM ENTERPRISES AND 2 ORS.

Mr. Shariq Shaikh i/by M/s. S. G. Legal and Associates, Advocate for the Applicant.

CORAM : RAJESH S. PATIL, J.

DATE : 5^th FEBRUARY, 2026

P.C. :-

Learned counsel appearing for the applicant submits that,

as the ARC has taken over the loan, he does not have any instructions in the present proceedings.

From the proceedings, it can be gathered that the learned arbitrator was appointed unilaterally by the claimants.

I have taken a view in the judgment of L & T Finance Ltd.

vs. Sangeeta Bhansali & Anr. in Commercial Execution Application (L)

Vivekanand

2/2

25 to 26 N-253-2025.doc

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 ground that the appointment of the arbitrator was unilateral.

In view of the aforesaid judgment, the award in the present proceedings passed by the learned arbitrator is hereby declared to be non-est in law, non-executable and void-ab-initio.

Execution Applications stands dismissed .

In sequel, Notices & 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.)