Partly allowed

L and T Finance Limited v. R K Industiries and Anr.

Bombay HC23 Apr 2026EXA/2322/2025

Case brief

AI extract

What is this about?

Execution of an arbitral award was challenged on the ground of unilateral appointment of the arbitrator. Following the Supreme Court decision in Bhadra International, the Bombay High Court set aside the award dated 11 November 2021, dismissed the execution application, permitted fresh arbitration proceedings and excluded limitation period.

What the court decided

AI extract

L and T Finance Limited vs R K Industiries and Anr. — Arbitration | Bombay HC (2026)

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38-IA-112-2023.doc

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

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Digitally signed by KANCHAN KANCHAN PRASHANT PRASHANT DHURI DHURI Date: 2026.04.23 20:09:57 +0530

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INTERIM APPLICATION NO. 112 OF 2023

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EXECUTION APPLICATION NO. 2322 OF 2025

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L and T Finance Limited … Applicant Versus

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R K Industries and another … Respondents

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WITH

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EXECUTION APPLICATION NO. 2322 OF 2025

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Ms. Rahila Memon alongwith Ms. Reet Jain instructed by S.I. Joshi & Co., Advocate for the Applicant.

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Ms. Natasha D’Mello, Advocate for the Respondents.

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CORAM : ABHAY AHUJA, J. DATE : 23 APRIL 2026

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P.C. :

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When the matter is called out, Ms. Memon, learned Counsel, appearing for the Applicant submits that in this matter there has been a unilateral appointment of Arbitrator and this Court may pass appropriate orders in view of the decision in the case of Bhadra International (India) Pvt. Ltd. and others vs. Airports Authority of India¹ , where the Hon’ble Supreme Court has clearly observed that unilateral appointment of arbitrator is void ab initio and the ineligibility can be raised at any stage and even in execution.

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1 2026 SCC Online SC 7

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Kanchan Dhuri 1/2

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38-IA-112-2023.doc

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The Execution Application No.2322 of 2025 is not on Board. Upon mentioning, the same is taken on Board.

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In view of the aforesaid, the award dated 11^th November 2021 is set aside and the Execution Application as well as the connected Interim Application stand dismissed/disposed.

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

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As far as limitation is concerned, the period from the invocation of the arbitration till today be excluded in initiating fresh arbitration proceedings.

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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.

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(ABHAY AHUJA, J.)

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Kanchan Dhuri 2/2

L and T Finance Limited v. R K Industiries and Anr.

Case brief

What is this about?

What the court decided

L and T Finance Limited v. R K Industiries and Anr.

Case brief

What is this about?

What the court decided

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