Shriram Transport Finance Co. Ltd. vs Kamlesh Somabhai Patel and Another — Bombay HC (2026) — LawSathi Research

Shriram Transport Finance Co. Ltd. vs Kamlesh Somabhai Patel and Another — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Leave to withdraw the execution applications with liberty to initiate fresh arbitration proceedings; the arbitral awards declared non-est in law, non-executable and void-ab-initio; notices and interim applications (if any) disposed of; limitation period from the invocation of arbitration till the date of the order excluded for initiating fresh arbitration proceedings.

Issue for consideration

Whether leave should be granted to withdraw the execution applications, arising out of arbitral awards where the arbitrator's appointment was unilateral, with liberty to initiate fresh arbitration proceedings. +1 more

Court's answer

Leave and liberty as prayed for is granted: the execution applications stand disposed of as withdrawn, notices and interim applications (if any) stand disposed of, and it is open to the parties to initiate fresh arbitration proceedings in accordance with law.

Ratio / Principle

In view of the Supreme Court's ruling in Bhadra International (India) Pvt. Ltd. and this Court's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali, the Arbitral Awards which are the subject matter of the present proceedings are declared to be non-est in law, non-executable and void-ab-initio.

Key takeaways

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¶35

Detailed headnote1 paragraphs

Execution — arbitration — unilateral appointment of arbitrator — withdrawal of execution applications with liberty — Held, following the Supreme Court in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India, Civil Appeal No. 37-38 of 2026 (decided 5 January 2026), and this Court's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali, Commercial Execution Application (L) No. 5277 of 2022, even at the stage of execution an arbitral award can be set aside being void-ab-initio where the arbitrator's appointment was unilateral. The arbitral awards in EXA/2314/2022 and EXA/2318/2022 were declared non-est in law, non-executable and void-ab-initio; the execution applications were disposed of as withdrawn with liberty to initiate fresh arbitration proceedings, and the period from the invocation of arbitration till the date of the order was excluded for limitation. (Rajesh S. Patil, J.; 5 February 2026)

Vivekanand

1/2

108 to 109 N-785-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

108 N/785/2025

In

EXA/2314/2022

SHRIRAM TRANSPORT FINANCE CO. LTD.

VS

KAMLESH SOMABHAI PATEL AND ANOTHER

WITH

109 N/825/2025

In

EXA/2318/2022

SHRIRAM TRANSPORT FINANCE CO. LTD.

VS

DILIP RAMNAVAL SINGH AND ANOTHER

Mr. Nilkanth D. Gadge i/by Mr. Narayan R. Awate, Advocate for the Applicant.

CORAM : RAJESH S. PATIL, J.

DATE : 5^th FEBRUARY, 2026

P.C. :-

Mr. Gadge, 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 seek Notices & s 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.

Vivekanand

2/2

108 to 109 N-785-2025.doc

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.

1. Leave and liberty as prayed for, is granted.

3.1) The Arbitral Awards which is subject matter of the present

proceedings are hereby declared to be non-est in law, non-executable and void-ab-initio.

1. Execution Applications stands disposed of as withdrawn.

1. 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.)