Axis Bank Ltd. vs Shree Silk, and Anr. — Bombay HC (2026) — LawSathi Research

Axis Bank Ltd. vs Shree Silk, and Anr. — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Execution Application disposed of as withdrawn with leave and liberty to initiate fresh arbitration proceedings; the Arbitral Award declared non-est in law, non-executable and void-ab-initio; pending Notice and Interim Applications disposed of; the period from invocation of arbitration till the date of the order excluded for limitation purposes for fresh arbitration.

Issue for consideration

Whether an arbitral award made pursuant to the unilateral appointment of the arbitrator is executable, or liable to be set aside as void-ab-initio, at the stage of execution. +1 more

Court's answer

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.

Ratio / Principle

Even at the stage of execution, an arbitral award can be set aside as void-ab-initio on the ground that the appointment of the arbitrator was unilateral — the view taken by this court in L & T Finance Ltd. v. Sangeeta Bhansali, considering the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India.

Key takeaways

Leave and liberty as prayed for by the claimant (to withdraw the execution application and initiate fresh arbitration proceedings) is granted.ratio¶15
It shall be open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶20
For limitation purposes, 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 (Ordinary Original Civil Jurisdiction), Rajesh S. Patil J., 13 February 2026 (31 N/605/2025 in EXA/595/2022): Execution application by Axis Bank Ltd. against Shree Silk and another arising out of an Arbitral Award in which the arbitrator's appointment was unilateral. Relying on the court's own earlier view in L & T Finance Ltd. v. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022), which considered the Supreme Court's decision of 5 January 2026 in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeal Nos. 37-38 of 2026) — 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 to withdraw the execution application, declared the Arbitral Award non-est in law, non-executable and void-ab-initio, disposed of the application as withdrawn together with the pending Notice and Interim Applications, left the parties free to initiate fresh arbitration proceedings, and directed that the period from the invocation of arbitration till the date of the order be excluded for limitation purposes.

2026:BHC-OS:4366

Diksha Rane 31 N 605 2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

31 N/605/2025 In

EXA/595/2022

AXIS BANK LTD. VS SHREE SILK, AND ANR.

Adv. Narayan R. Awate for the claimant.

CORAM : RAJESH S. PATIL, J. DATE : 13 FEBRUARY 2026.

P.C. :

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 International (India) Pvt. Ltd. and others vs. Airport Authority of India, Civil Appeal No. 37-38 of 2026, wherein it has been held

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Diksha Rane 31 N 605 2025.doc

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.

1. In sequel, the Notice and 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.)

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Signed by: Diksha Rane Designation: PS To Honourable Judge Date: 16/02/2026 20:57:51