Hdb Financial Services Limited vs Dhiraj D Dodiya — Arbitration | Bombay HC (2026)

Hdb Financial Services Limited vs Dhiraj D Dodiya — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Arbitral awards set aside; Commercial Execution Applications and connected Interim Applications/Chamber Summons dismissed/disposed; parties free to initiate fresh arbitration with the period from invocation till this order excluded for limitation; liberty to apply where an express written agreement under the proviso to Section 12(5) waives the ineligibility.

Issue for consideration

Whether arbitral awards founded on a unilaterally appointed sole arbitrator can stand and be enforced, given the Supreme Court's observation in Bhadra International that such appointment is void ab initio and the ineligibility may be raised at any stage, even in execution.

Court's answer

Since the appointment of the sole arbitrator was found (by the office of the Prothonotary & Senior Master) to be unilateral, the respective arbitral awards stand set aside.

Ratio / Principle

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

Key takeaways

It would be open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶19
For initiating fresh arbitration proceedings, the period from the invocation of the arbitration till the date of this order is to be excluded for purposes of limitation.ratio¶20
Liberty to apply where 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

Detailed headnote1 paragraphs

Bombay HC (Ordinary Original Civil Jurisdiction), Abhay Ahuja J. — batch order, Serial Nos. 901 to 1151 (Commercial Execution Applications). Relying on the Supreme Court decision in Bhadra International (India) Pvt. Ltd. v. Airports Authority of India (2026 SCC Online SC 7), wherein unilateral appointment of an arbitrator was observed to be void ab initio with ineligibility raisable at any stage and even in execution, and on the finding by the office of the Prothonotary & Senior Master that the sole arbitrator stood unilaterally appointed, the Court set aside the respective arbitral awards and dismissed/diposed the Commercial Execution Applications together with connected Interim Applications and Chamber Summons, if any. Parties are free to initiate fresh arbitration in accordance with law; the period from invocation of arbitration till the date of the order is excluded for limitation; and liberty to apply is granted where an express agreement in writing under the proviso to Section 12(5), Arbitration and Conciliation Act, 1996 waives the ineligibility or the right to object.

901 to 1151.doc

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

SERIAL NOS. 901 TO 1151

Mr. Suraj Gupta i/b S. G. Lega & Associates for the Applicant in Sr. No. 907, 914 and 1033 to 1038.

Mr. Raj Ambetkar i/bMs. Swantantri Waghmare for the Applicant in Sr. No. 1018.

None present in other matters.

CORAM : ABHAY AHUJA, J. DATE : 21^st 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, the respective arbitral awards stand set aside and the Commercial Execution Applications and

NIKITA YOGESH GADGIL

Digitally signed by NIKITA YOGESH GADGIL Date: 2026.04.21 17:33:11 +0530

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

1 2026 SCC Online SC 7

Nikita Gadgil 1/2

901 to 1151.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.)

Nikita Gadgil 2/2