Authority: High Court of Judicature at Bombay

Order Date: 28 August 2026

Case Overview

  • Applicant: Shriram Transport Finance Co. Ltd
  • Respondents: Abdul Kalam Jamil Kahan (borrower) and others
  • Counsel for Applicant: Adv. Disha Karambar, i/b Adv. Disha Karambar & Associates
  • Coram: Justice Advaith M. Sethna
  • Application: Execution Application No. 371 of 2017 with Chamber Summons No. 185 of 2017
  • The applicant sought leave to withdraw the execution proceedings.
  • The Court noted that the matter is covered by the Supreme Court judgment in Bhadra International (India) Pvt. Ltd. and Others v. Airport Authority of India (Civil Appeal Nos. 37‑38 of 2026, decided 5 January 2026), which held that an arbitral award is void ab initio if the arbitrator was unilaterally appointed.
  • The Court reiterated that a decree passed by a court lacking jurisdiction is void (coram non judice) and cannot be cured by the parties.
  • The Court also referred to its own earlier decisions, including L & T Finance Ltd. v. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No.5277 of 2022, decided 17 January 2026), which adopt the same view.

Order

1. Leave is granted to the Applicant to withdraw the execution proceedings.

2. The parties are free to initiate fresh arbitration proceedings, if necessary, in accordance with law.

3. Regarding limitation, the period commencing from the date of invocation of arbitration until the date of this order shall be excluded if fresh proceedings are initiated.

4. The Application is disposed of as withdrawn.

5. Any interim applications, if any, are also disposed of and will not survive.

Final Outcome

  • The execution application is withdrawn and all related proceedings are terminated.
  • Parties may start new arbitration; the limitation period is excluded for the interval between arbitration invocation and this order.

Topics: Arbitration, Execution Proceedings