Shriram City Union Finance Ltd. vs Ravi Rama Ugrej and 2 Ors. — Arbitration | Bombay HC (2026)

Shriram City Union Finance Ltd. vs Ravi Rama Ugrej and 2 Ors. — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Dismissal of the Commercial Execution Applications and connected Interim Applications and any Chamber Summons; setting aside of the respective arbitral awards; liberty to initiate fresh arbitration in accordance with law with exclusion of limitation for the period from invocation of arbitration till today; liberty to apply where an express written waiver under the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 exists.

Issue for consideration

Whether, in view of the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India, the Commercial Execution Applications founded on arbitral awards passed by a unilaterally appointed sole arbitrator must be dismissed and the awards set aside. +2 more

Court's answer

Since in all these matters the appointment of the sole arbitrator was found to be unilateral, the applications stand dismissed in view of the above decision of the Hon'ble Supreme Court in Bhadra International (India) Pvt. Ltd., and the respective arbitral awards stand set aside.

Ratio / Principle

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

Key takeaways

It would be open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶17
As far as limitation is concerned, the period from the invocation of the arbitration till today is to be excluded in initiating fresh arbitration proceedings.ratio¶18
Liberty is granted to the parties 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).

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (Abhay Ahuja, J.), batch disposal of Commercial Execution Applications (Serial Nos. 901 to 1033, 1035 to 1055 and 1057 to 1148). The matters were listed in view of the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India, 2026 SCC Online SC 7, where unilateral appointment of arbitrator was observed to be void ab initio and the ineligibility raisable at any stage, even in execution. Since the office of the Prothonotary & Senior Master of the Bombay High Court found the appointment of the sole arbitrator unilateral in all these matters, the applications stood dismissed in view of the Supreme Court's decision, the respective arbitral awards stood set aside, and the connected Interim Applications and any Chamber Summons stood dismissed/disposed. Parties were left free to initiate fresh arbitration proceedings in accordance with law, with the period from invocation of arbitration till the date of the order excluded for limitation; liberty was granted to apply where an express agreement in writing under 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 1033, 1035 to 1055 and 1057 to 1148.doc

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

SERIAL NOS. 901 TO 1033, 1035 TO 1055 AND 1057 TO 1148

M/s Bijal Gogri i/b GNP Legal for the Applicant in Sr no. 975. Ms. Bijal Gogri i/b O. M. Gujar Law Chambers for the Applicant in Sr. No. 923, 924, 925, 936, 969, 976, 977, 978, 999, 1033, 1035, 1054, 1078, 1079, 1080, 1081, 1090 to 1106 and 1144 to 1148.

Mr. Pawan Kilnake i/b SG Legal & Associates for the Applicant in Sr. No. 940, 947, 948, 961, 962, 965, 971, 988, 989, 990, 992, 1076, 1107, 1108, 1109, 1110, 1111, 1120 and 1121.

Mr. Sangram Suryavanshi with Mr. Shubham Pasvant for the Applicant in Sr. No. 973 and 974.

Ms. Merlin Sam i/b P. D. Jain & Co. for the Applicant in Sr. No. 1075. None present in other matters.

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: 2026.04.08 20:08:39 +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

1 2026 SCC Online SC 7

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901 to 1033, 1035 to 1055 and 1057 to 1148.doc

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.

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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