Avanse Financial Services Ltd. vs Executive Airways Private Limited and 3 Ors. — Bombay HC (2026) — LawSathi Research

Avanse Financial Services Ltd. vs Executive Airways Private Limited and 3 Ors. — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Execution Application No. 2040 of 2022 together with Notice No. 683 of 2025 dismissed; arbitral award dated 16.09.2019 declared non-est in law, non-executable and void-ab-initio; interim applications, if any, disposed of; parties left free to initiate fresh arbitration, with the period from invocation of arbitration till 03.02.2026 excluded for limitation purposes.

Issue for consideration

Whether an arbitral award passed by a sole arbitrator whose appointment was unilateral can be set aside as void-ab-initio at the stage of execution, rendering the award non-executable.

Court's answer

The arbitral award dated 16.09.2019 passed by the sole arbitrator in the present proceeding is declared non-est in law, non-executable and void-ab-initio.

Ratio / Principle

Acting on his earlier judgment in L & T Finance Ltd. vs. Sangeeta Bhansali & Anr. and the Supreme Court judgment of 5 January 2026 in Bhadra International (India) Pvt. Ltd. and others vs. Airport Authority of India, this court proceeded on the view that an arbitral award can be set aside as void-ab-initio even at the stage of execution on the ground that the arbitrator's appointment was unilateral.

Key takeaways

It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶30
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¶31

Detailed headnote1 paragraphs

Bombay High Court (Ordinary Original Civil Jurisdiction), Rajesh S. Patil, J.; order dated 03.02.2026 on Notice No. 683 of 2025 in Execution Application No. 2040 of 2022 (Avanse Financial Services Ltd. v. The Executive Airways Pvt. Ltd. & ors.). Following the author judge's earlier judgment in L & T Finance Ltd. vs. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022) and the Supreme Court judgment of 5 January 2026 in Bhadra International (India) Pvt. Ltd. and others vs. Airport Authority of India (Civil Appeal No. 37-38 of 2026) - that an arbitral award can be set aside as void-ab-initio even at the stage of execution where the arbitrator's appointment was unilateral - the court declared the arbitral award dated 16.09.2019 passed by the sole arbitrator non-est in law, non-executable and void-ab-initio, dismissed the Execution Application and Notice, disposed of interim applications, permitted the parties to initiate fresh arbitration in accordance with law, and excluded from limitation the period from invocation of the arbitration till the date of the order.

N 683-2025.doc

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

NOTICE NO. 683 OF 2025 IN

EXECUTION APPLICATION NO. 2040 OF 2022

ANAND SUDHAKAR SUDAME

Digitally signed by ANAND SUDHAKAR SUDAME

Date: 2026.02.04 18:56:45 +0530

Avanse Financial Services Ltd. ..Applicant

Versus

The Executive Airways Pvt. Ltd. & ors.

..Respondents

None present

CORAM : RAJESH S. PATIL, J.

DATE : 03.02.2026

P. C.

1. None appears for the applicant when the matter is called out.

1. From the proceedings, it can be gathered that the appointment of

the sole arbitrator was unilateral.

1. 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.

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Anand

N 683-2025.doc

1. In view of the aforesaid judgment, the arbitral award in the present proceeding dated 16.09.2019 passed by the sole arbitrator is hereby declared to be non-est in law, non-executable and void-ab-initio.

1. Execution Application along with Notice stand dismissed .

1. In sequel, the Interim Applications, if any, also stand disposed of.

1. It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.

1. 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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Anand