Tata Motors Finance Solutions Limited Now Known as Tata Motors… — Arbitration | Bombay HC (2026)

Tata Motors Finance Solutions Limited Now Known as Tata Motors… — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

The respective arbitral awards stand set aside; the Commercial Execution Applications / Execution Applications and the connected Interim Applications and Chamber Summons, if any, stand dismissed/disposed; parties are free to initiate fresh arbitration with the period from invocation of arbitration till the date of this order excluded for limitation; liberty to apply where an express written waiver under the proviso to Section 12(5) exists.

Issue for consideration

Whether the arbitral awards in the listed execution matters, founded on unilateral appointment of the sole arbitrator, should be set aside and the pending Commercial Execution Applications / Execution Applications (with connected Interim Applications and Chamber Summons) dismissed/disposed, and whether the parties may initiate fresh arbitration. +2 more

Court's answer

Since the appointment of the sole arbitrator was found to be unilateral in all these matters, and in view of the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. vs. Airports Authority of India, the respective arbitral awards stand set aside and the Commercial Execution Applications / Execution Applications, together with the connected Interim Applications and Chamber Summons, if any, stand dismissed/disposed.

Ratio / Principle

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

Key takeaways

For limitation purposes, in initiating fresh arbitration proceedings the period from the invocation of the arbitration till the date of this order is to be excluded.ratio¶18
Liberty is granted to apply in the event there exists an express agreement in writing, in terms of the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996, waiving the ineligibility of the sole arbitrator or the right to object under Section 12(5).ratio¶19

Detailed headnote1 paragraphs

High Court of Judicature at Bombay, OOCJ (Abhay Ahuja, J.), batch order dated 22 April 2026 in Serial Nos. 901 to 975 and 977 to 1155 (Commercial Execution Applications / Execution Applications): Acting on the Supreme Court decision in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India, 2026 SCC OnLine SC 7, that unilateral appointment of an arbitrator is void ab initio and the ineligibility can be raised at any stage, even in execution, and upon the finding of the office of the Prothonotary & Senior Master that the sole arbitrator had been unilaterally appointed in all these matters, the Court set aside the respective arbitral awards and dismissed/disposed of the execution applications together with the connected interim applications and chamber summonses. The parties were permitted to initiate fresh arbitration proceedings in accordance with law; the period from invocation of the arbitration till the date of the order was directed to be excluded for limitation; and liberty was granted to apply where there exists an express agreement in writing, per the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996, waiving the arbitrator's ineligibility or the right to object thereunder.

901 to 975 and 977 to 1155.doc

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

SERIAL NOS. 901 TO 975 AND 977 TO 1155

Ms. Bijal Gogri i/b GNP Legal for the Applicant in Sr. No. 926, 948 and 949.

Ms. Bijal Gogri i/b O.M. Gujar Law Chambers for the Applicant in Sr. No.927,930,975 and 980.

Mr. Suraj Gupta i/b SG Legal & Associates for the Applicant in Sr. No. 928,929,951,1014 to 1018,1022 to 1024,1027,1028,1039 and 1060. Ms. Reena Lange i/b PMH Law for the Applicant in Sr.no. 930. None present in other matters.

CORAM : ABHAY AHUJA, J. DATE : 22^nd 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.

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 and the Commercial Execution Applications / Execution Applications,

1 2026 SCC Online SC 7

Nikita Gadgil 1/2

Digitally signed by NIKITA NIKITAYOGESH YOGESH GADGIL GADGIL Date:2026.04.22 19:39:20 +0530

901 to 975 and 977 to 1155.doc

and the connected Interim Applications as well as the Chamber Summons, if any, stand accordingly 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.)

Nikita Gadgil 2/2