Shriram City Union Finance Ltd. vs Nareshkumar Sukhdev Dubey and Another — Bombay HC (2026) — LawSathi Research

Shriram City Union Finance Ltd. vs Nareshkumar Sukhdev Dubey and Another — 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Execution Application disposed of as withdrawn with leave and liberty to initiate fresh arbitration proceedings; Arbitral Award declared non-est in law, non-executable and void-ab-initio; period from invocation of arbitration till date excluded for limitation; Notice and Interim Applications, if any, stand disposed of.

Issue for consideration

Whether an arbitral award passed with a unilaterally appointed arbitrator can be set aside as void-ab-initio and treated as non-executable even 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, the Arbitrator's appointment having been unilateral.

Ratio / Principle

Leave and liberty as prayed for is granted to the claimant to withdraw the execution application and initiate fresh arbitration proceedings.

Key takeaways

For the purpose of initiating fresh arbitration proceedings, the period from the invocation of the arbitration till today shall stand excluded for limitation.ratio¶21

Detailed headnote1 paragraphs

Execution Application (EXA/428/2018, with Notice N/921/2025), High Court of Bombay, Rajesh S. Patil, J., 27 February 2026: Execution proceedings arising out of an Arbitral Award wherein the Arbitrator's appointment was unilateral. Relying on the court's earlier view in L & T Finance Ltd. v. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022) and the Supreme Court's judgment of 5 January 2026 in Bhadra International (India) Pvt. Ltd. v. Airport Authority of India, Civil Appeal No. 37-38 of 2026 (holding that even at the stage of execution an arbitral award can be set aside as void-ab-initio for unilateral appointment of the arbitrator), the court declared the Arbitral Award non-est in law, non-executable and void-ab-initio. Leave and liberty granted to withdraw the execution application and initiate fresh arbitration; the period from invocation of arbitration till the date of the order excluded for limitation; Notice and Interim Applications disposed of.

2026:BHC-OS:5435

Diksha Rane 34 EXA 428 2018.doc

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

34 EXA/428/2018 WITH N/921/2025 IN EXA/428/2018

SHRIRAM CITY UNION FINANCE LTD. VS NARESHKUMAR SUKHDEV DUBEY AND ANOTHER

Adv. Vishal Narkar for the applicant.

CORAM : RAJESH S. PATIL, J. DATE : 27 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

1

Diksha Rane 34 EXA 428 2018.doc

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.

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.)

2

Signed by: Diksha Rane Designation: PS To Honourable Judge Date: 27/02/2026 18:10:17