Shriram Transport Finance Company Ltd. vs Yuvraj Prabhu Salunkhe (Borrower) and Anr. — Bombay HC (2026) — LawSathi Research

Shriram Transport Finance Company Ltd. vs Yuvraj Prabhu Salunkhe (Borrower) and Anr. — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Execution Application dismissed; arbitral award declared non-est in law, non-executable and void-ab-initio; interim applications/notice disposed of; parties left free to initiate fresh arbitration with the interregnum (invocation till 22.04.2026) excluded for limitation.

Issue for consideration

Whether an arbitral award passed by a unilaterally appointed sole arbitrator can be executed, i.e., whether such an award can be set aside as void-ab-initio even at the stage of execution. +1 more

Court's answer

Applying the Supreme Court decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India, this Court declares the arbitral award passed by the unilaterally appointed sole arbitrator to be non-est in law, non-executable and void-ab-initio; such an award can be set aside even at the stage of execution.

Ratio / Principle

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

Key takeaways

As far as limitation is concerned, 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.ratio¶35

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (Rajesh S. Patil, J.), 22 April 2026, in Execution Application No. 843/2022, M/s. Shriram Transport Finance Company Limited v. Yuvraj Prabhu Salunkhe (borrower) & Anr.: Observing from the proceedings that the sole arbitrator had been unilaterally appointed, and relying on his earlier view in L & T Finance Ltd. v. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022) and on the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. & Ors. v. Airport Authority of India, Civil Appeal Nos. 37-38 of 2026 (decided 5 January 2026), the Court held that even at the stage of execution an arbitral award passed by a unilaterally appointed arbitrator can be set aside as void-ab-initio. The arbitral award in the present proceeding was declared non-est in law, non-executable and void-ab-initio, and the Execution Application was dismissed. Interim Applications/Notice stood disposed of. The parties were left free to initiate fresh arbitration proceedings in accordance with law, with the period from invocation of arbitration until the date of the order excluded for the purpose of limitation.

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13 - EXA 843 OF 2022.doc

Digitally signed by KANCHAN KANCHANVINOD VINOD MAYEKAR MAYEKAR Date:2026.04.24 19:49:06 +0530

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

EXECUTION APPLICATION NO. 843/2022 ALONGWITH

NOTICE NO. 380/2025 IN

EXECUTION APPLICATION NO. 843/2022

M/S. SHRIRAM TRANSPORT FINANCE COMPANY LIMITED

….. APPLICANT

VS

YUVRAJ PRABHU SALUNKHE (BORROWER) AND ANR.

….. RESPONDENTS

None for the Applicant.

None for the Respondents.

CORAM : RAJESH S. PATIL, J.

DATE : 22 APRIL, 2026

P.C. :-

1. None appears for the applicant when the matter is called

out.

1. From the proceedings, it can be gathered that the

appointment of the sole arbitrator was unilateral.

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

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13 - EXA 843 OF 2022.doc

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.

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

Execution Application stands dismissed .

In sequel, the Interim Applications/Notice, 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.)