Volkswagen Finance Pvt. Ltd. Now Known as Kotak Mahindra Prime… — Arbitration | Bombay HC (2026)

Volkswagen Finance Pvt. Ltd. Now Known as Kotak Mahindra Prime… — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

The Commercial Execution Applications (with connected Interim Applications and Chamber Summons, if any) stand dismissed/disposed and the respective arbitral awards stand set aside; parties are at liberty to initiate fresh arbitration proceedings in accordance with law, with the period from invocation of the arbitration till today excluded for limitation; liberty to apply where an express written agreement in terms of the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 waives the ineligibility.

Issue for consideration

Whether, in view of the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. v. Airports Authority of India (unilateral appointment of arbitrator being void ab initio, with ineligibility raisable at any stage, even in execution), the Commercial Execution Applications founded on awards passed by a unilaterally appointed sole arbitrator should be dismissed and the awards set aside. +1 more

Court's answer

In view of the decision of the Hon'ble Supreme Court in Bhadra International (India) Pvt. Ltd. v. Airports Authority of India, since the appointment of the sole arbitrator in all these matters was found by the office of the Prothonotary & Senior Master to be unilateral, the said applications stand dismissed and the respective arbitral awards stand set aside.

Ratio / Principle

It would be 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 to be excluded for purposes of limitation.ratio¶15
Liberty 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); a conditional direction, since no such waiver is stated to exist in these matters.obiter¶16

Detailed headnote1 paragraphs

Bombay High Court (Ordinary Original Civil Jurisdiction), Abhay Ahuja J., 7 April 2026 — batch of Commercial Execution Applications (Serial Nos. 901 to 1063 and 1065 to 1150): the matters were listed in view of the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. v. 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. Upon the finding of the office of the Prothonotary & Senior Master that the appointment of the sole arbitrator in all these matters was unilateral, the applications stand dismissed and the respective arbitral awards stand set aside. Parties may initiate fresh arbitration in accordance with law, with the period from invocation of the arbitration till today excluded for limitation; liberty to apply where an express written agreement in terms of the proviso to Section 12(5), Arbitration and Conciliation Act, 1996 waives the ineligibility of the sole arbitrator or the right to object thereunder.

901 to 1063 and 1065-1150.doc

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

SERIAL NOS. 901 TO 1063 AND 1065 TO 1150

Ms. Bijal Gogri i/b O. M. Gujar Law Chambers for the Applicant in Sr. No. 965,980,1098 and 1099 and in Sr. No. 983 i/b GNP Legal. None present in other matters.

CORAM : ABHAY AHUJA, J. DATE : 7^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.

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, the said applications, in view of the above decision of the Hon'ble Supreme Court, stand dismissed. The respective arbitral awards stand set aside and the Commercial Execution Applications and the connected Interim Applications as well as the Chamber Summons, if any, stand accordingly dismissed / disposed.

1 2026 SCC Online SC 7

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901 to 1063 and 1065-1150.doc

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.)

Digitally signed by NIKITA NIKITAYOGESH YOGESH GADGIL GADGIL Date:2026.04.08 13:31:04 +0530

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