Shriram Finance Limited vs Rashmikant Harishankar Mehta and Anr. — Arbitration | Bombay HC (2026)

Shriram Finance Limited vs Rashmikant Harishankar Mehta and Anr. — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Arbitral awards set aside on account of unilateral appointment of the sole arbitrator; Commercial Execution Applications / Execution Applications and connected Interim Applications and Chamber Summons dismissed / disposed; parties free to initiate fresh arbitration in accordance with law; period from invocation of arbitration till the date of the order excluded for limitation; liberty to apply where an express written agreement under the proviso to Section 12(5) waives the ineligibility or the right to object.

Issue for consideration

Whether arbitral awards made pursuant to a unilaterally appointed sole arbitrator can stand and be enforced in execution, in view of the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India. +2 more

Court's answer

The respective arbitral awards stand set aside in view of the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. and Others vs. Airports Authority of India, as the appointment of the sole arbitrator in each matter was found to be unilateral.

Ratio / Principle

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

Key takeaways

The parties are at liberty to initiate fresh arbitration proceedings in accordance with law.ratio¶18
For fresh arbitration proceedings, the period from the invocation of the arbitration till the date of this order is to be excluded for limitation purposes.ratio¶19
Liberty to apply is reserved 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).

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (Abhay Ahuja, J.; 24 April 2026) - batch disposal of Commercial Execution Applications / Execution Applications (Serial Nos. 902, 904-933, 935-949, 951-1108, 1110, 1112-1123, 1128-1141, 1143-1151). The office of the Prothonotary & Senior Master found the appointment of the sole arbitrator unilateral in all the matters. Acting 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 (unilateral appointment of an arbitrator is void ab initio; ineligibility can be raised at any stage and even in execution), the Court set aside the respective arbitral awards and dismissed / disposed the execution applications together with the connected Interim Applications and Chamber Summons, if any. The parties were left free to initiate fresh arbitration proceedings in accordance with law; the period from the invocation of the arbitration till the date of the order was directed to be excluded for limitation; and liberty to apply was reserved where an express agreement in writing in terms of the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 waives the ineligibility of the sole arbitrator or the right to object under Section 12(5).

902, 904 to 933, 935 to 949, 951 to 1108, 1110,1112 to 1123, 1129 to 1141, 1143 to 1151.doc

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

SERIAL NOS. 902, 904 TO 933, 935 TO 949,951 TO 1108, 1110, 1112 TO 1123, 1128 TO 1141, 1143 TO 1151

Ms. Bijal Gogri i/b O.M. Gujar Law Chambers for the Applicant in Sr. Nos.902, 904, 933, 936, 937, 947, 948, 951, 986, 1019, 1108, 1110, 1112 to 1115, 1129 & 1142.

Ms. Bijal Gogri i/b GNP Legal for the Applicant in Sr. Nos. 939,940 & 942.

Mr. Pawan Kulmakar i/b SG Legal & Associates for the Applicant in Sr. Nos. 945, 952, 975, 976, 977, 983, 984 & 987. None present in other matters.

CORAM : ABHAY AHUJA, J. DATE : 24^th 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

1 2026 SCC Online SC 7

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Digitally signed by NIKITA NIKITA YOGESH YOGESH GADGIL GADGIL Date: 2026.04.24 18:08:42 +0530

902, 904 to 933, 935 to 949, 951 to 1108, 1110,1112 to 1123, 1129 to 1141, 1143 to 1151.doc

and the Commercial Execution Applications / Execution Applications, and the connected Interim Applications as well as the Chamber Summons, if any, accordingly stand 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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