Tata Capital Limited (Formerly Known as Tata Capital Financial… — Arbitration | Bombay HC (2026)

Tata Capital Limited (Formerly Known as Tata Capital Financial… — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Arbitral award dated 27 April 2023 set aside; Execution Application No. 2382 of 2025 and the connected Interim Application dismissed; parties left free to initiate fresh arbitration with the period from invocation till the date of the order excluded for limitation; conditional liberty to apply where an express written agreement in terms of the proviso to Section 12(5) waives the arbitrator's ineligibility.

Issue for consideration

Whether the award dated 27 April 2023, which counsel for the Applicant submits arose from a unilateral appointment of the arbitrator, should be set aside and the Execution Application and connected Interim Application dismissed. +2 more

Court's answer

Acting on the submission grounded in the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. and others vs. Airports Authority of India, the award dated 27 April 2023 is set aside and the Execution Application as well as the connected Interim Application stand dismissed.

Ratio / Principle

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

Key takeaways

In initiating fresh arbitration proceedings, the period from the invocation of the arbitration till today is to be excluded for limitation.ratio¶18
Liberty to apply is granted 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. — Interim Application No. 13 of 2025 in Execution Application No. 2382 of 2025, Tata Capital Limited v. Santosh Sadanand Nahichiadkar, decided 20 April 2026. Acting on counsel's submission invoking the Supreme Court decision in Bhadra International (India) Pvt. Ltd. and others vs. Airports Authority of India (2026 SCC OnLine SC 7) — per which a unilateral appointment of an arbitrator is void ab initio and the ineligibility can be raised at any stage, even in execution — the Court set aside the arbitral award dated 27 April 2023 and dismissed the Execution Application together with the connected Interim Application. The parties remain free to initiate fresh arbitration proceedings in accordance with law, with the period from the invocation of arbitration until the date of the order to be excluded for limitation. Liberty to apply was reserved for the event that an express agreement in writing in terms of the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 exists, waiving the sole arbitrator's ineligibility or the right to object under Section 12(5).

IA-13-2025.doc

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

INTERIM APPLICATION NO. 13 OF 2025

IN

EXECUTION APPLICATION NO. 2382 OF 2025

Tata Capital Limited (Formerly Known as Tata Capital Financial Services Ltd.) … Applicant V/s. Santosh Sadanand Nahichiadkar … Respondent

Ms. Bijal Gogri i/b. O M Gujar Law Chambers, Advocate for Applicant. None for Respondent.

CORAM : ABHAY AHUJA, J. DATE : 20^th APRIL 2026

P.C. :

When the matter is called out, Ms. Gogri, 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

1 2026 SCC Online SC 7

Digitally signed by NIKITA NIKITA YOGESH YOGESH GADGIL GADGIL Date: 2026.04.21 20:43:16 +0530

Mandar M. 1/2

IA-13-2025.doc

unilateral appointment of arbitrator is void ab initio and the ineligibility can be raised at any stage and even in execution.

In view of the aforesaid, the award dated 27^th April, 2023 is therefore set aside and the Execution Application as well as the connected Interim Application stand dismissed.

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.)

Mandar M. 2/2