Kshitiz Gas Agency ( Borrower) v. Nikhil N Hindlekar (Guarantor)
Case brief
What is this about?
Arbitration; unilateral appointment of sole arbitrator; objection to arbitrator's ineligibility raised at execution stage; award dated 20 January 2024 set aside; execution dismissed; execution application and interim application disposed; fresh arbitration permitted; limitation — exclusion of period from invocation of arbitration till order date; proviso to Section 12(5), Arbitration and Conciliation Act 1996; waiver of ineligibility by express written agreement; Bhadra International (India) Pvt. Ltd. vs. Airports Authority of India, 2026 SCC Online SC 7 (Supreme Court, relied on); Shriram Finance Limited vs. Kshitiz Gas Agency; Bombay High Court OOCJ; Interim Application No. 560 of 2026 in Execution Application No. 2875 of 2024; Abhay Ahuja, J.; decided 2 April 2026.
What did the court decide?
The execution proceedings, including Execution Application No. 2875 of 2024 and the connected Interim Application No. 560 of 2026, are dismissed and stand disposed; the subject arbitral award dated 20th January 2024 is set aside; the parties may initiate fresh arbitration in accordance with law, with the period from invocation of arbitration till 2 April 2026 excluded for limitation; liberty to apply in respect of any express written waiver under the proviso to Section 12(5).