Shriram Transport Finance Company Ltd. vs Abdul Motin Wajis Ali (Borrower) and Anr. — Bombay HC (2026) — LawSathi Research

Shriram Transport Finance Company Ltd. vs Abdul Motin Wajis Ali (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 at liberty to initiate fresh arbitration, with the period from invocation of arbitration till 21-04-2026 excluded for limitation.

Issue for consideration

Whether an arbitral award passed by a sole arbitrator appointed unilaterally can be set aside as void-ab-initio and treated as non-est/non-executable at the stage of execution. +1 more

Court's answer

The arbitral award in the present proceeding, passed by the sole arbitrator, is declared non-est in law, non-executable and void-ab-initio, the appointment of the arbitrator having been unilateral.

Ratio / Principle

The period from the invocation of the arbitration till the date of this order (21 April 2026) shall stand excluded for the purpose of initiating fresh arbitration proceedings.

Key takeaways

It shall be open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶34

Detailed headnote1 paragraphs

Execution of arbitral award — unilateral appointment of sole arbitrator — award declared non-est, non-executable and void-ab-initio even at execution stage. High Court of Judicature at Bombay (Ordinary Original Civil Jurisdiction), Rajesh S. Patil, J., 21 April 2026 (Execution Application No. 842/2022, Shriram Transport Finance Company Limited v. Abdul Motin Wajis Ali (Borrower) and Anr.). None of the parties appeared when the matter was called out. Proceeding on the observation that the sole arbitrator's appointment was unilateral, and applying the Supreme Court's holding in Bhadra International (India) Pvt. Ltd. and others v. Airport Authority of India, Civil Appeal Nos. 37-38 of 2026 (decided 5 January 2026), together with the Judge's own earlier view in L & T Finance Ltd. v. Sangeeta Bhansali & Anr., Commercial Execution Application (L) No. 5277 of 2022, the Court declared the arbitral award passed by the sole arbitrator to be non-est in law, non-executable and void-ab-initio and dismissed the Execution Application. The Interim Applications/Notice stood disposed of; the parties were left free to initiate fresh arbitration in accordance with law, with the period from the invocation of arbitration till the date of the order excluded for limitation purposes.

KVM

1/2

9 - EXA 842 OF 2022.doc

Digitally signed by KANCHAN KANCHAN VINOD VINOD MAYEKAR MAYEKAR Date: 2026.04.21 18:36:13 +0530

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

EXECUTION APPLICATION NO. 842/2022

ALONGWITH

NOTICE NO. 383/2025 IN

EXECUTION APPLICATION NO. 842/2022

SHRIRAM TRANSPORT FINANCE COMPANY LIMITED

….. APPLICANT

VS

ABDUL MOTIN WAJIS ALI (BORROWER) AND ANR ….. RESPONDENTS

None for the Applicant.

None for the Respondents.

CORAM : RAJESH S. PATIL, J.

DATE : 21 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.

1. 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

KVM

2/2

9 - EXA 842 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.)