Authority: High Court of Judicature at Bombay
Order Date: 28 August 2026
Case Overview
- Applicant: Shriram Transport Finance Co. Ltd (borrower’s financier).
- Respondents: Ramesh Purshotam Thakkar (borrower) and an additional respondent.
- Application: Execution Application No. 832 of 2017 with Chamber Summons No. 184 of 2017.
- Counsel for Applicant: Ms. Disha Karambar, appearing on instructions to seek 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 when the arbitrator is unilaterally appointed.
- The Supreme Court further observed that a decree passed by a court lacking jurisdiction is coram non judice and therefore non‑est; no party action can cure such inherent jurisdictional defect.
- The Bombay High Court referenced its own consistent view in earlier decisions, notably the order in L & T Finance Ltd. vs. Sangeeta Bhansali & Anr. (Commercial Execution Application (L) No. 5277 of 2022, decided 17 January 2026).
Final Outcome
- The Court granted leave to the Applicant to withdraw the execution proceedings.
- It directed that the parties may, if they wish, initiate fresh arbitration proceedings in accordance with the law.
- 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.
- The execution application is disposed of as withdrawn, and any interim applications, if present, are also disposed of.
- Judgment signed by Justice Advaith M. Sethna and digitally signed by Mayur Kondiram Adane on 28 August 2026 at 19:29:21 +0530.
Topics: Court Order, Arbitration Withdrawal, Financial Services