Shriram City Union Finance Ltd. vs Bablu Namdeo Navratne and Another — Bombay HC (2026) — LawSathi Research

Shriram City Union Finance Ltd. vs Bablu Namdeo Navratne and Another — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Leave and liberty granted to withdraw the execution application with liberty to initiate fresh arbitration proceedings; the Arbitral Award declared non-est in law, non-executable and void-ab-initio; Notice and Interim Applications disposed of; parties free to initiate fresh arbitration; period from invocation of arbitration till the date of the order excluded for limitation purposes.

Issue for consideration

Whether leave should be granted to withdraw the execution application with liberty to initiate fresh arbitration proceedings, the underlying Arbitral Award having arisen from a unilateral appointment of the Arbitrator. +2 more

Court's answer

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

Ratio / Principle

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.

Key takeaways

The Execution Application stands disposed of as withdrawn.ratio¶18
In sequel, the Notice and the Interim Applications, if any, also stand disposed of.ratio¶19
It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶20

Detailed headnote1 paragraphs

Execution Application (32 EXA/424/2018, High Court of Judicature at Bombay, Ordinary Original Civil Jurisdiction; Rajesh S. Patil, J.; decided 27 February 2026): Shriram City Union Finance Ltd.'s execution application against Bablu Namdeo Navratne and another arose out of an Arbitral Award in which the Arbitrator's appointment was unilateral. The claimant's counsel sought leave to withdraw the application with liberty to initiate fresh arbitration. The Judge, recalling the view taken by him in L & T Finance Ltd. vs. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022) made considering the Supreme Court's decision of 5 January 2026 in Bhadra International (India) Pvt. Ltd. and others vs. Airport Authority of India (Civil Appeal No. 37-38 of 2026) — wherein it was held that even at the stage of execution an arbitral award can be set aside as void-ab-initio on the ground of unilateral appointment of the arbitrator — granted leave and liberty, declared the Arbitral Award non-est in law, non-executable and void-ab-initio, disposed of the Execution Application as withdrawn together with the Notice and Interim Applications, left the parties free to initiate fresh arbitration proceedings in accordance with law, and ordered that the period from the invocation of the arbitration till the date of the order shall stand excluded for limitation purposes.

2026:BHC-OS:5432

Diksha Rane 32 EXA 424 2018.doc

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

32 EXA/424/2018 WITH N/922/2025 IN EXA/424/2018

SHRIRAM CITY UNION FINANCE LTD. VS BABLU NAMDEO NAVRATNE 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 32 EXA 424 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 18:05:19