Hdb Financial Services Limited vs Vijay Jaywant Ahiwale — Arbitration | Bombay HC (2026)

Hdb Financial Services Limited vs Vijay Jaywant Ahiwale — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Respective arbitral awards set aside; Commercial Execution Applications / Execution Applications and the connected Interim Applications, as well as Chamber Summons, if any, dismissed / disposed. Parties at liberty to initiate fresh arbitration proceedings in accordance with law; limitation period from invocation of the arbitration till the date of the order excluded; liberty to apply where an express agreement in writing waives the Section 12(5) ineligibility or right to object.

Issue for consideration

Whether arbitral awards flowing from a unilateral appointment of the sole arbitrator should be set aside, resulting in dismissal/disposal of the corresponding Commercial Execution Applications / Execution Applications.

Court's answer

Having regard to the decision of the Hon'ble Supreme Court in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India, and since in all these matters the appointment of the sole arbitrator was found by the office of the Prothonotary & Senior Master to have been unilateral, the respective arbitral awards stand set aside.

Ratio / Principle

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

Key takeaways

For limitation purposes, the period from the invocation of the arbitration until today is to be excluded in initiating fresh arbitration proceedings.ratio¶19
Liberty 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) of the said Act.ratio¶20

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (Abhay Ahuja, J.; order dated 23 April 2026): batch disposal of Commercial Execution Applications / Execution Applications (Serial Nos. 901 to 903 and 905 to 1150). Matters relisted 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), which observed that unilateral appointment of an arbitrator is void ab initio and that ineligibility can be raised at any stage and even in execution. As the office of the Prothonotary & Senior Master found the sole-arbitrator appointment unilateral in every matter, the respective arbitral awards were set aside and the execution applications, together with the connected Interim Applications and Chamber Summons, if any, were dismissed / disposed. Parties may initiate fresh arbitration proceedings in accordance with law; the period from invocation of the arbitration to the date of the order is excluded for limitation; liberty reserved to apply where an express agreement in writing, per 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 903 and 905 to 1150.doc

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

SERIAL NOS. 901 TO 903 AND 905 to 1150

Ms. Bijal Gogri i/b GNP Legal for the Applicant in Sr. No. 1068. Ms. Bijal Gogri i/b O.M. Gujar Law Chambers for the Applicant in Sr. No.1006, 1007, 1024 and 1025

Mr. Suraj Gupta i/b SG Legal & Associates for the Applicant in Sr. No. 910, 911, 1009, 1018, 1019, 1089, 1093, 1096, 1098, 1100, 1103, 1105, 1106, 1107, 1109 to 1116, 1022 and 1023. None present in other matters.

CORAM : ABHAY AHUJA, J. DATE : 23^rd 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, in view of the above decision of the Hon'ble Supreme Court, the respective arbitral awards stand set aside and the Commercial Execution Applications / Execution Applications,

1 2026 SCC Online SC 7

NIKITA YOGESH GADGIL

Digitally signed by NIKITA YOGESH GADGIL Date: 2026.04.23 16:41:27 +0530

Nikita Gadgil 1/2

901 to 903 and 905 to 1150.doc

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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