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Judgment
S. Manu, J.
In all these Arbitration Requests, the factual circumstances are identical. All the loan agreements, in all these cases, contain an arbitration clause. Invoking the arbitration clauses, arbitral proceedings were initiated. Awards were passed by the Arbitrators. The petitioners in all these cases sought execution of the award by approaching the Civil Courts concerned. Execution Courts dismissed the Execution Petitions holding that the awards were unenforceable. The rationale for this was that the appointment of arbitrators in all these cases was unilateral. The declarations made by the Execution Courts in all these cases is virtually to the effect that the awards were non est in the eye of law.
In M/s.Agro Indus Credits Limited v. Mangalan [2026(1) KLT 1] this Court held that once an arbitration award is set aside or declared as nullity, to initiate fresh arbitral proceedings, it is indispensable to make a fresh request as contemplated under Section 21 of the Arbitration and Conciliation Act, 1996.
Once the arbitral award is declared as unenforceable/nullity in the eye of law by a competent court, even during execution proceedings, the impact of such a finding is akin to that of setting aside an award. The outcome remains the same. The award loses its legal sanctity, becomes inoperative and loses all its force. Under such circumstances, also, declaration of law in M/s.Agro Indus Credits Limited would squarely apply. Therefore, if the execution court finds that an arbitral award is unenforceable and invalid for any reason, in order to initiate fresh arbitral proceedings, it is essential to make a fresh request/issue fresh notice as contemplated under Section 21 of the Act, 1996.
In all these cases, after dismissal of the Execution Petitions, no fresh notices were issued to the respondents. Therefore, these Arbitration Requests are premature. Accordingly, they are closed.
However, it will be open to the petitioners to issue fresh notice to the respondents and seek recourse to this Court again, if required.
Arbitration Requests are disposed of as above.
APPENDIX OF AR NO. 16 OF 2026
PETITIONER ANNEXURES
Annexure A1 THE TRUE COPY OF THE LOAN AGREEMENT DT.14/9/2021
Annexure A2 THE TRUE COPY OF THE AWARD IN ACP. 271/2022 PASSED BY THE ARBITRATOR DATED 16/11/2022
Annexure A3 THE TRUE COPY OF THE ORDER IN E.P. NO. 318/2023 IN ACP NO.271/2022 BEFORE THE COURT OF ADDITIONAL DISTRICT JUDGE- IV, THRISSUR DT.22/8/2024
APPENDIX OF AR NO. 18 OF 2026
PETITIONER ANNEXURES
Annexure A1 THE TRUE COPY OF THE LOAN AGREEMENT DT.26/12/2022
Annexure A2 THE TRUE COPY OF THE AWARD IN ACP. 106/2024 PASSED BY THE ARBITRATOR DT.7/8/2024
Annexure A3 THE TRUE COPY OF THE ORDER IN E.P. NO. 25/2025 IN ACP NO.106/2024 BEFORE THE COURT OF ADDITIONAL DISTRICT JUDGE- III, THRISSUR DT.30/6/2025
APPENDIX OF AR NO. 19 OF 2026
PETITIONER ANNEXURES
Annexure A1 THE TRUE COPY OF THE LOAN AGREEMENT DT.16/6/2021
Annexure A2 THE TRUE COPY OF THE AWARD IN ACP. 31/2023 PASSED BY THE ARBITRATOR DT.30/5/2023
Annexure A3 THE TRUE COPY OF THE ORDER IN E.P. NO. 602/2023 IN ARB. PROCEEDINGS NO. ACP 31/2023 BEFORE THE COURT OF ADDITIONAL DISTRICT JUDGE- IV, THRISSUR DT.4/3/2024
APPENDIX OF AR NO. 20 OF 2026
PETITIONER ANNEXURES
Annexure A1 THE TRUE COPY OF THE LOAN AGREEMENT DT.21/9/2022
Annexure A2 THE TRUE COPY OF THE AWARD IN ACP.20/2024 PASSED BY THE ARBITRATOR DT.29/1/2025
Annexure A3 THE TRUE COPY OF THE ORDER IN E.P. NO. 93/2025 IN ACP NO.20/2024 BEFORE THE COURT OF ADDITIONAL DISTRICT JUDGE- III, THRISSUR DT.10/9/2025
APPENDIX OF AR NO. 21 OF 2026
PETITIONER ANNEXURES
Annexure A1 THE TRUE COPY OF THE LOAN AGREEMENT DT.24/10/2024
Annexure A2 THE TRUE COPY OF THE AWARD IN ACP. 186/2024 PASSED BY THE ARBITRATOR DT.11/9/2024
Annexure A3 THE TRUE COPY OF THE ORDER IN E.P. NO. 27/2025 IN ARB. CASE NO. ACP 186/2024 BEFORE THE COURT OF ADDITIONAL DISTRICT JUDGE- III, THRISSUR DT.2/8/2025
APPENDIX OF AR NO. 22 OF 2026
PETITIONER ANNEXURES
Annexure A1 THE TRUE COPY OF THE EXTRACT OF RESOLUTION PASSED BY THE BOARD OF DIRECTORS, PNY SABHA FINANCE LIMITED, DATED 18.09.2015
Annexure A2 THE TRUE COPY OF THE EXTRACT OF RESOLUTION PASSED BY THE BOARD OF DIRECTORS, PNY SABHA FINANCE LIMITED, DATED 07.12.2023
Annexure A3 THE TRUE COPY OF THE MEMORANDUM OF AGREEMENT FOR LOAN BETWEEN THE PETITIONER AND THE RESPONDENT, DATED 29.03.2011
Annexure A4 THE TRUE COPY OF THE LETTER IN LIEU OF RE-DEPOSIT BETWEEN THE PETITIONER AND THE RESPONDENT, DATED 30.03.2017
Annexure A5 THE TRUE COPY OF THE LETTER OF CONFIRMATION ISSUED TO THE PETITIONER, DATED 30.03.2017
Annexure A6 THE TRUE COPY OF THE DEMAND PROMISSORY NOTE, ISSUED BY THE RESPONDENT TO THE PETITIONER, DATED 29.03.2017
Annexure A7 THE TRUE COPY OF THE DP NOTE DELIVERY LETTER, ISSUED BY THE RESPONDENT TO THE PETITIONER, DATED 29.03.2017
Annexure A8 THE TRUE COPY OF THE NOTICE ISSUED BY THE PETITIONER TO THE RESPONDENT, DATED 24.01.2019
Annexure A9 THE TRUE COPY OF THE ARBITRATION AWARD PASSED BY THE SOLE ARBITRATOR, DATED 13.06.2019
Annexure A10 THE TRUE COPY OF THE ORDER OF HONOURABLE ADDITIONAL DISTRICT COURT, ERNAKULAM IN EP NO.281/2023, DATED 25.03.2025
Annexure A11 THE TRUE COPY OF THE LOAN LEDGER STATEMENT OF THE PETITIONER, DATED 23.12.2025