Tata Captial Financial Services Ltd. vs Nirav Jagdishbhai Gohil — Arbitration | Bombay HC (2026)

Tata Captial Financial Services Ltd. vs Nirav Jagdishbhai Gohil — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Arbitral awards set aside; Commercial Execution Applications / Execution Applications and connected Interim Applications and Chamber Summons dismissed/disposed; liberty to initiate fresh arbitration in accordance with law with exclusion of the limitation period from invocation till date; liberty to apply where Section 12(5) ineligibility is waived by express written agreement.

Issue for consideration

Whether, in view of the Supreme Court's decision in Bhadra International that unilateral appointment of an arbitrator is void ab initio and the ineligibility can be raised even in execution, the arbitral awards in these matters (where the sole arbitrator was unilaterally appointed) ought to be set aside and the execution applications dismissed.

Court's answer

Since the appointment of the sole arbitrator in all these matters was found to be unilateral, the respective arbitral awards stand set aside in view of the Supreme Court's decision in Bhadra International.

Ratio / Principle

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¶12
For fresh arbitration proceedings, the period from the invocation of the arbitration till the date of this order is to be excluded for limitation.ratio¶13
Liberty to apply is granted 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

Arbitration – Unilateral appointment of sole arbitrator – Following the Supreme Court's decision in Bhadra International (India) Pvt. Ltd. and Others v. Airports Authority of India, 2026 SCC Online SC 7, that unilateral appointment of an arbitrator is void ab initio and the ineligibility can be raised at any stage and even in execution, the Bombay High Court (Abhay Ahuja, J.) set aside the respective arbitral awards in a batch of Commercial Execution Applications / Execution Applications, the office of the Prothonotary & Senior Master having found the sole arbitrator's appointment to be unilateral; the execution applications, connected Interim Applications and Chamber Summons stood dismissed/disposed. Parties were left free to initiate fresh arbitration in accordance with law; the period from invocation of arbitration till the date of the order was excluded for limitation; and liberty was granted to apply where an express written agreement under the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 waives the arbitrator's ineligibility or the right to object.

902 to 1148.doc

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

SERIAL NOS. 902 TO 909, 911 TO 924, 926 TO 938, 941 TO 981, 983 TO 988, 993 TO 1002, 1005, 1007 TO 1021, 1023 TO 1026, 1032 TO 1047, 1049 TO 1073, 1075 TO 1110, 1113 TO 1135, 1137 TO 1148

None appears for the parties.

CORAM : ABHAY AHUJA, J. DATE : 5^th MAY, 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, and the connected Interim Applications as well as the Chamber Summons, if any, accordingly stand dismissed / disposed.

1 2026 SCC Online SC 7

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902 to 1148.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.

NIKITA YOGESH GADGIL

(ABHAY AHUJA, J.)

Digitally signed by NIKITA YOGESH GADGIL Date: 2026.05.06 19:15:11 +0530

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