Shriram City Union Finance Ltd. vs Dixit Sunny Rajendr — Bombay HC (2026) — LawSathi Research

Shriram City Union Finance Ltd. vs Dixit Sunny Rajendr — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Execution Application No. 1319/2022 disposed of as withdrawn, with leave and liberty to initiate fresh arbitration proceedings; the Arbitral Award declared non-est in law, non-executable and void-ab-initio; the period from invocation of arbitration till the date of the order excluded for limitation; Notice and Interim Applications, if any, also disposed of.

Issue for consideration

Whether an arbitral award founded on the unilateral appointment of the Arbitrator is executable at the stage of execution, or is void-ab-initio and non-est in law. +1 more

Court's answer

The Arbitral Award, being the product of a unilateral appointment of the Arbitrator, is declared non-est in law, non-executable and void-ab-initio.

Ratio / Principle

Leave and liberty as prayed for — withdrawal of the execution application with liberty to initiate fresh arbitration proceedings — is granted.

Key takeaways

It shall be open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶30
For limitation purposes, the period from the invocation of the arbitration till the date of this order shall stand excluded for initiating fresh arbitration proceedings.ratio¶31

Detailed headnote1 paragraphs

Bombay High Court (Ordinary Original Civil Jurisdiction), Notice No. 563 of 2025 in Execution Application No. 1319/2022 — Shriram City Union Finance Ltd. (Claimant) v. Dixit Sunny Rajendr (Respondent); Coram: Rajesh S. Patil, J.; decided 20 February 2026. The execution proceedings arose out of an Arbitral Award in which the Arbitrator's appointment was unilateral. On the claimant's request, and taking into account the Judge's own earlier view in L & T Finance Ltd. v. Sangeeta Bhansali (Commercial Execution Application (L) No. 5277 of 2022) read with the Supreme Court's judgment of 5 January 2026 in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeal Nos. 37-38 of 2026) — to the effect that even at the stage of execution an arbitral award can be set aside as void-ab-initio where the arbitrator's appointment was unilateral — the Court granted leave and liberty to withdraw the execution application with liberty to initiate fresh arbitration, declared the Arbitral Award non-est in law, non-executable and void-ab-initio, disposed of the Notice and Interim Applications, and excluded the period from invocation of arbitration till the date of the order for limitation purposes.

Vivekanand

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34-N-563-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

NOTICE NO. 563 OF 2025

IN

EXECUTION APPLICATION NO. 1319/2022

SHRIRAM CITY UNION FINANCE LTD

….. CLAIMANT

VERSUS

DIXIT SUNNY RAJENDR

….. RESPONDENT

Adv. Vishal V. Narkar, Advocate for the Claimant.

CORAM : RAJESH S. PATIL, J.

DATE : 20^th FEBRUARY, 2026

P.C. :-

Mr. Narkar, 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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34-N-563-2025.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.)