Avanse Financial Services Ltd. v. Parvathamma Narasimhaiah Charitable Trust

1 S.N.19 EXA-2301-2025.DOC

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION NATIONAL LOK ADALAT SUMIT RAMESH KARNIK by SUMIT RAMESH KARNIK Date: 2026.05.18 11:28:46 +0530 EXECUTION APPLICATION NO.2301 OF 2025 WITH INTERIM APPLICATION NO.3407 OF 2024 Avanse Financial Services Ltd.

..Claimant

Versus

Parvathamma Narasimhaiah Charitable Trust ..Respondent _______ Adv. Ms. Bijal Gogri i/b GNP Legal present for Claimant. Mr. Ashok Wakchaure - Legal Manager (through V.C.) present for Claimant.

None for Respondents.

_______

CORAM:

AARTI SATHE, J.

G.P.DESHMUKH (OSD AT CPC) G.G.BHALCHANDRA (OSD, e-HCR/BDLR) DATE:

9th May 2026 P.C.

1.

Ms. Gogri, learned counsel appears on behalf of the Claimant. Mr. Ashok Wakchaure - Legal Manager (through V.C.) of Avanse Financial Services Ltd. has placed before this Court his

2 S.N.19 EXA-2301-2025.DOC identity card and letter of authority dated 1st January, 2026 authorizing him to appear in the aforesaid matters. 2.

Ms. Gogri, learned counsel appearing for the claimant submits that the execution proceedings arise out of an Arbitral Award, where the Arbitrator's appointment was unilateral. Hence, she on instructions of her client seeks leave to withdraw the present execution applications, with liberty to initiate fresh arbitration proceedings.

3.

A co-ordinate Bench of this Court in L & T Finance Ltd. vs. Sangeeta Bhansali & Anr. In Commercial Execution Application (L) No.5277 of 2022, has followed the recent judgment of the Supreme Court decided on 5th January, 2026, in the matter of Bhadra International (India) Pvt. Ltd. and others vs. Airport Authority of India, Civil Appeal No. 37-38 of 2026, wherein it has been held that even at the stage of execution, arbitral award can be set aside being void-ab-initio on the grounds that the appointment of the arbitrator was unilateral.

4.

Leave to withdraw granted with liberty as prayed for. 4.1.

The Arbitral Award which is subject matter of the present proceedings is hereby set aside and declared to be non-est in law, non-executable and void-ab-initio.

3 S.N.19 EXA-2301-2025.DOC 5.

Execution Application stand disposed of as withdrawn.

6.

In sequel, the Interim Applications, if any, also stand disposed of.

7.

It shall be open for the parties to initiate fresh arbitration proceedings in accordance with law. 8.

As far as limitation is concerned, the period from the invocation of the arbitration till today shall stand excluded for the purpose of initiating fresh arbitration proceedings. (G.G.BHALCHANDRA) (G.P.DESHMUKH) (AARTI SATHE, J.)