Aditya Birla Finance Limited vs Bikram Sahu — Arbitration | Bombay HC (2026)

Aditya Birla Finance Limited vs Bikram Sahu — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Arbitral awards set aside; the Execution Applications and connected Interim Applications stand dismissed/disposed; parties permitted to initiate fresh arbitration proceedings in accordance with law; the period from invocation of arbitration till the date of the order excluded for limitation; liberty to apply under the proviso to Section 12(5) where an express written agreement waiving the ineligibility exists.

Issue for consideration

Whether the arbitral awards underlying the execution applications are liable to be set aside because the Arbitrator was unilaterally appointed. +1 more

Court's answer

The arbitral awards are set aside, and the Execution Applications as well as the connected Interim Applications stand dismissed/disposed.

Ratio / Principle

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

Key takeaways

For limitation purposes, in initiating fresh arbitration proceedings, the period from the invocation of the arbitration till the date of this order is to be excluded.ratio¶23
Liberty to apply is granted in the event an express agreement in writing exists 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¶27

Detailed headnote1 paragraphs

Bombay High Court (OOCJ), Abhay Ahuja, J., 21 April 2026 — Composite order disposing three interim applications in pending execution matters: I.A. No. 2485/2025 in E.A. No. 7/2026 (Kotak Mahindra Bank Ltd. v. Medanta Hospital), I.A. No. 3262/2025 in Commercial E.A. No. 50/2025 (Aditya Birla Finance Ltd. v. Bikram Sahu) and I.A. No. 5483/2025 in E.A. No. 2170/2025 (Aditya Birla Finance Ltd. v. Aamir Khan). Counsel for the Applicants (Ms. Vedika Pedhambkar, i/b Akhil Modi and Associates) submitted that there had been a unilateral appointment of Arbitrator, invoking the Hon'ble Supreme Court's decision in Bhadra International (India) Pvt. Ltd. v. Airports Authority of India, 2026 SCC OnLine SC 7, wherein (per counsel's account) unilateral appointment of arbitrator is void ab initio and ineligibility can be raised at any stage, even in execution. In view thereof, the Court set aside the arbitral awards and dismissed/disposed the Execution Applications and connected Interim Applications; opened the way for fresh arbitration in accordance with law; directed that the period from invocation of arbitration till the date of the order be excluded for limitation; and granted liberty to apply where an express agreement in writing under 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). None of the Respondents appeared.

36-IA-2485-2025.38-IA-3262-2025-44-IA-5483-2025doc

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

INTERIM APPLICATION NO. 2485 OF 2025 IN

EXECUTION APPLICATION NO. 7 OF 2026

KOTAK MAHINDRA BANK LIMITED )...APPLICANT V/s. MEDANTA HOSPITAL )...RESPONDENT AND

INTERIM APPLICATION NO. 3262 OF 2025 IN COMMERCIAL EXECUTION APPLICATION NO. 50 OF 2025

ADITYA BIRLA FINANCE LIMITED )...APPLICANT V/s. BIKRAM SAHU )...RESPONDENT

AND

INTERIM APPLICATION NO. 5483 OF 2025 IN

EXECUTION APPLICATION NO. 2170 OF 2025

ADITYA BIRLA FINANCE LIMITED )...APPLICANT

V/s.

AAMIR KHAN )...RESPONDENT

Ms.Vedika Pedhambkar i/b Akhil Modi and Associates, Advocate for the Applicants.

None for the Respondents.

CORAM : ABHAY AHUJA, J. DATE : 21^st APRIL 2026

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36-IA-2485-2025.38-IA-3262-2025-44-IA-5483-2025doc

P.C. :

Ms.Vedika Pedhambkar, learned Counsel, appears for the Applicants in these matters and submits that in these matters 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 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 arbitral awards are set aside and the Execution Applications as well as the connected Interim Applications 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.

1 2026 SCC OnLine SC 7.

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36-IA-2485-2025.38-IA-3262-2025-44-IA-5483-2025doc

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.)

ARTI VILAS KHATATE

Digitally signed by ARTI VILAS KHATATE Date: 2026.04.22 10:49:24 +0530

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