Shriram City Union Finance Limited vs Mashuq Ali and 3 Ors. — Arbitration | Bombay HC (2026)

Shriram City Union Finance Limited vs Mashuq Ali and 3 Ors. — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Respective arbitral awards set aside; Commercial Execution / Execution Applications and connected Interim Applications and Chamber Summons dismissed / disposed; parties permitted to initiate fresh arbitration with the period from invocation of arbitration till the date of the order excluded for limitation, and liberty to apply on an express written waiver under the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996.

Issue for consideration

Whether arbitral awards passed on the strength of a unilateral appointment of the sole arbitrator can stand, or must be set aside in view of the decision in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India. +2 more

Court's answer

Finding in each matter that the appointment of the sole arbitrator was unilateral, and in view of the Hon'ble Supreme Court's decision in Bhadra International, the respective arbitral awards stand set aside.

Ratio / Principle

It is open to the parties to initiate fresh arbitration proceedings in accordance with law.

Key takeaways

For initiating fresh arbitration proceedings, the period from the invocation of the arbitration till today is excluded for the purposes of limitation.ratio¶18
Liberty is reserved to the parties to apply where there exists an express agreement in writing in terms of the proviso to Section 12(5) waiving the sole arbitrator's ineligibility or the right to object; that question is otherwise left open.obiter¶19

Detailed headnote1 paragraphs

Bombay High Court (OOCJ), Abhay Ahuja J., 20th April 2026 — Batch order (Serial Nos. 901 to 1149): Acting on the Hon'ble Supreme Court's decision in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India (2026 SCC Online SC 7), wherein it was observed that unilateral appointment of an arbitrator is void ab initio and the ineligibility can be raised at any stage and even in execution, and on the finding of the office of the Prothonotary & Senior Master that the appointment of the sole arbitrator in each of these matters had been unilateral, the Court set aside the respective arbitral awards and dismissed / disposed the Commercial Execution / Execution Applications along with the connected interim applications and chamber summons. The parties were declared free to initiate fresh arbitration proceedings in accordance with law, with the period from the invocation of the arbitration until the date of the order excluded for limitation. Liberty was reserved to apply in the event an express agreement in writing in terms of the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 waives the sole arbitrator's ineligibility or the right to object under Section 12(5).

901 to 1149.doc

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

SERIAL NOS. 901 TO 1149

Ms. Bijal Gogri i/b O, M. Gujar Law Chambers for the Applicant in Serial No. 905, 924, 926, 963 and 1078.

Mr. Suraj Gupta i/b SG Legal and Associates for the Applicant in Serial No. 908,909,910,926,983,1041,1100 and 1102.

Ms. Bijal Gogri i/b GNP Legal for the Applicant in Serial No. 921 to 923.

Mr. Sangram B. Suryavanshi for the Applicant in Serial No. 1120.

CORAM : ABHAY AHUJA, J. DATE : 20^th April 2026

PC:-

All these matters have been listed in view of the decision of the

Hon'ble Supreme Court in the case of Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India¹ where the Hon'ble Supreme Court has observed that unilateral appointment of arbitrator is void ab initio and the ineligibility can be raised at any stage and even in execution.

Digitally signed by NIKITA NIKITA YOGESH YOGESH GADGIL GADGIL Date: 2026.04.20 15:47:01 +0530

Since in all these matters it has been found by the office of the Prothonotary & Senior Master of this Court that the appointment of the sole arbitrator has been unilateral, in view of the above decision of the Hon'ble Supreme Court, the respective arbitral awards stand set aside 1 2026 SCC Online SC 7

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901 to 1149.doc

and the Commercial Execution / Execution Applications and the connected Interim Applications as well as the Chamber Summons, if any, accordingly stand dismissed / disposed.

It would be open to 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 be excluded in initiating fresh arbitration proceedings.

Liberty to apply in the event there exists an express agreement in writing in terms of proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 (the “said Act”) waiving the ineligibility of the sole arbitrator or the right to object under Section 12(5) of the said Act.

(ABHAY AHUJA, J.)

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