Au Small Finance Bank Ltd. vs Prashant Tours and Travesl Pro-Prashant Shejwal and 2 Ors. — Bombay HC (2026) — LawSathi Research

Au Small Finance Bank Ltd. vs Prashant Tours and Travesl Pro-Prashant Shejwal and 2 Ors. — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Execution Applications dismissed; arbitral awards declared non-est in law, non-executable and void-ab-initio; parties at liberty to initiate fresh arbitration in accordance with law; period from invocation of arbitration till the date of the order excluded for limitation; Notices and Interim Applications, if any, disposed of.

Issue for consideration

Whether arbitral awards passed by unilaterally appointed sole arbitrators can be set aside at the stage of execution as void-ab-initio and are therefore non-executable. +1 more

Court's answer

In view of the Supreme Court's judgment in Bhadra International and the Court's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali, the arbitral award in these proceedings, passed by the unilaterally appointed sole arbitrator, is declared non-est in law, non-executable and void-ab-initio.

Ratio / Principle

The Execution Applications stand dismissed.

Key takeaways

It shall be open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶50
For limitation, 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¶51

Detailed headnote1 paragraphs

Execution — Notices under Order XXI Rule 22 CPC — arbitral awards passed by unilaterally appointed sole arbitrators — following the Supreme Court's judgment in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India (Civil Appeal Nos. 37-38 of 2026, decided 5 January 2026) and the Court's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali (Commercial Execution Application (L) No. 5277 of 2022), held that even at the stage of execution an arbitral award can be set aside as void-ab-initio where the appointment of the arbitrator was unilateral — arbitral awards declared non-est in law, non-executable and void-ab-initio — Execution Applications dismissed — parties at liberty to initiate fresh arbitration in accordance with law — period from invocation of arbitration till the date of the order excluded for limitation. (Rajesh S. Patil, J.; 5 February 2026)

Vivekanand

1/3

73 to 76 N-638-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

73 N/638/2025

In

EXA/2176/2022

KOTAK MAHINDRA PRIME LTD. VS

SANTOSH KARUNAKARAN NAIR

WITH

74 N/640/2025

In

EXA/2177/2022

KOTAK MAHINDRA PRIME LTD.

VS

ASHRAF KHAN

WITH

75 N/656/2025 In

EXA/1337/2022

AU SMALL FINANCE BANK LTD.

VS

PRASHANT TOURS AND TRAVELS PRO-PRASHANT SHEJWAL AND 2

ORS.

WITH

76 N/667/2025

In

EXA/1271/2022

INDIA INFOLINE FINANCE LTD. VS

SUWARATH VISHWANATH RAJBHAR (BORROWER) AND 2 ORS

None Present.

Vivekanand

2/3

73 to 76 N-638-2025.doc

CORAM : RAJESH S. PATIL, J.

DATE : 5^th FEBRUARY, 2026

P.C. :-

These Notices are filed under the provisions of Order XXI, Rule 22 of the Code of Civil Procedure, in the year 2025.

None appears for the applicant when the matters are

called out.

From the proceedings, it can be gathered that the appointment of the sole arbitrator was unilateral.

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 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.

Vivekanand

3/3

73 to 76 N-638-2025.doc

1. Execution Applications stand dismissed .

In sequel, Notices & 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.)