Hdb Financial Services Limited vs Rajesh Chintaman Ingale — Bombay HC (2026) — LawSathi Research

Hdb Financial Services Limited vs Rajesh Chintaman Ingale — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Leave to withdraw Execution Application No. 943/2022 granted; Arbitral Award declared non-est in law, non-executable and void-ab-initio; parties at liberty to initiate fresh arbitration proceedings in accordance with law; period from invocation of arbitration till 11-02-2026 excluded for limitation; Notice and Interim Applications, if any, stand disposed of.

Issue for consideration

Whether the applicant may withdraw the execution application arising out of an Arbitral Award passed by a unilaterally appointed Arbitrator, with liberty to initiate fresh arbitration proceedings. +2 more

Court's answer

Leave and liberty as prayed for is granted to the applicant to withdraw the execution application with liberty to initiate fresh arbitration proceedings.

Ratio / Principle

The Arbitral Award which is the subject matter of the present execution proceedings is declared to be non-est in law, non-executable and void-ab-initio.

Key takeaways

The Execution Application stands disposed of as withdrawn.ratio¶¶31
It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶¶33
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

Detailed headnote1 paragraphs

Bombay High Court (OOCJ), Notice No. 402 of 2025 in Execution Application No. 943/2022 (Rajesh S. Patil, J., 11-02-2026): HDB Financial Services Ltd.'s execution application against Rajesh Chintaman Ingale arose out of an Arbitral Award passed where the Arbitrator's appointment was unilateral. Relying on its own earlier view in L & T Finance Ltd. v. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022) and considering the Supreme Court's judgment of 05-01-2026 in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeal Nos. 37-38 of 2026), which holds that even at the execution stage an arbitral award can be set aside as void-ab-initio for unilateral appointment of the arbitrator, the Court declared the award non-est in law, non-executable and void-ab-initio, disposed of the execution application as withdrawn with liberty to initiate fresh arbitration, and excluded the period from invocation of arbitration till the date of the order for limitation purposes.

Vivekanand

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58-N-402-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

NOTICE NO. 402 OF 2025

IN

EXECUTION APPLICATION NO. 943/2022

HDB FINANCIAL SERVICES LIMITED

….. APPLICANT

VERSUS

RAJESH CHINTAMAN INGALE

….. RESPONDENT

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

CORAM : RAJESH S. PATIL, J.

DATE : 11^th FEBRUARY, 2026

P.C. :-

Mr. Shaikh, 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

Vivekanand

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58-N-402-2025.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 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.

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.)