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

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

What the court decided

AI extract

Outcome

Execution Application dismissed; award in the present proceedings declared non-est in law, non-executable and void-ab-initio; the Notice and any Interim Applications disposed of; parties left free to initiate fresh arbitration proceedings, with the period from invocation of arbitration till the date of the order excluded for limitation.

Issue for consideration

Whether the arbitral award passed by an arbitrator appointed unilaterally by the claimants can stand / be executed at the execution stage, in circumstances where counsel for the applicant had no instructions as the ARC had taken over the loan. +1 more

Court's answer

Noting that the arbitrator had been appointed unilaterally by the claimants, and in view of the Supreme Court judgment in Bhadra International (India) Pvt. Ltd. and others v. Airport Authority of India (decided 5 January 2026) together with the Judge's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali & Anr., the Court declared the award in the present proceedings to be non-est in law, non-executable and void-ab-initio.

Ratio / Principle

Consequent upon the award being declared non-executable, the Execution Application was dismissed.

Key takeaways

It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶31
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¶32

Detailed headnote1 paragraphs

Bombay HC (OOCJ), Notice No. 396 of 2025 in Execution Application No. 614/2022 - HDB Financial Services Ltd. (applicant) v. S S Products and Anr. (respondents); Coram: Rajesh S. Patil, J.; decided 16 February 2026. Counsel for the applicant reported having no instructions as the ARC had taken over the loan. Observing that the arbitrator had been appointed unilaterally by the claimants, and relying on the Supreme Court judgment in Bhadra International (India) Pvt. Ltd. and others v. Airport Authority of India (Civil Appeal No. 37-38 of 2026, dated 5 January 2026) read with the Judge's 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 in the present proceedings non-est in law, non-executable and void-ab-initio; dismissed the Execution Application; disposed of the Notice and interim applications; permitted fresh arbitration, directing that the period from invocation of arbitration till the date of the order be excluded for limitation.

Vivekanand

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46-N-396-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

NOTICE NO. 396 OF 2025 IN

EXECUTION APPLICATION NO. 614/2022

HDB FINANCIAL SERVICES LIMITED

….. APPLICANT

VERSUS

S S PRODUCTS AND ANR

….. RESPONDENTS

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

CORAM : RAJESH S. PATIL, J.

DATE : 16^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)

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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46-N-396-2025.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 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 Application stands dismissed .

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.)