Shriram Finance Limited Formerly Known as Shriram Transport… — Arbitration | Bombay HC (2026)

Shriram Finance Limited Formerly Known as Shriram Transport… — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Respective arbitral awards set aside; Commercial Execution Applications, connected Interim Applications and any Chamber Summons dismissed/disposed; parties at liberty to initiate fresh arbitration, with the period from invocation till the date of the order excluded for limitation, and liberty to apply where an express written agreement waives ineligibility/right to object under proviso to Section 12(5), Arbitration and Conciliation Act, 1996.

Issue for consideration

Whether arbitral awards founded on a unilateral appointment of the sole arbitrator can stand, so that execution applications founded on them may proceed.

Court's answer

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

Ratio / Principle

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

Key takeaways

It is open to the parties to initiate fresh arbitration proceedings in accordance with law.ratio¶19
For limitation purposes, the period from the invocation of the arbitration until the date of this order is excluded in initiating fresh arbitration proceedings.ratio¶20
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).ratio

Detailed headnote1 paragraphs

Bombay High Court, Ordinary Original Civil Jurisdiction (Abhay Ahuja, J.; order dated 21 April 2026) — Batch of Commercial Execution Applications, Serial Nos. 901 to 1151. All matters were listed in view of the Supreme Court decision in Bhadra International (India) Pvt. Ltd. and Others v. Airports Authority of India (2026 SCC Online SC 7), wherein the Supreme Court observed that unilateral appointment of an arbitrator is void ab initio and the ineligibility can be raised at any stage, even in execution. As the office of the Prothonotary & Senior Master found the appointment of the sole arbitrator unilateral in all these matters, the Court set aside the respective arbitral awards and dismissed/disposed of the Commercial Execution Applications together with the connected Interim Applications and any Chamber Summons. Parties were left free to initiate fresh arbitration in accordance with law; the period from invocation of arbitration until the order date was excluded for limitation; and liberty was reserved to apply where an express agreement in writing in terms of the proviso to Section 12(5) of the Arbitration and Conciliation Act, 1996 waives the arbitrator's ineligibility or the right to object under Section 12(5). Counsel appeared only for the Applicants in Sr. Nos. 907, 914, 1018 and 1033–1038; none was present in the other matters.

901 to 1151.doc

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

SERIAL NOS. 901 TO 1151

Mr. Suraj Gupta i/b S. G. Lega & Associates for the Applicant in Sr. No. 907, 914 and 1033 to 1038.

Mr. Raj Ambetkar i/bMs. Swantantri Waghmare for the Applicant in Sr. No. 1018.

None present in other matters.

CORAM : ABHAY AHUJA, J. DATE : 21^st 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, the said applications, in view of the above decision of the Hon'ble Supreme Court, the respective arbitral awards stand set aside and the Commercial Execution Applications and

NIKITA YOGESH GADGIL

Digitally signed by NIKITA YOGESH GADGIL Date: 2026.04.21 17:33:11 +0530

the connected Interim Applications as well as the Chamber Summons, if any, stand accordingly dismissed / disposed.

1 2026 SCC Online SC 7

Nikita Gadgil 1/2

901 to 1151.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.

(ABHAY AHUJA, J.)

Nikita Gadgil 2/2