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2026 Supreme(Online)(Ker) 14573

IN THE HIGH COURT OF KERALA AT ERNAKULAM
S.MANU, J
PNY SABHA FINANCE LTD. – Appellant
Versus
SHIJO VARGHESE – Respondent
AR NO. 240 OF 2025



Advocates:
For the Appellants/Petitioners: SHRI.AKHIL ALPHONSE G., SHRI.SURESH G.
For the Respondents: SRI.V.P.POULOSE, SRI.T.S.HARIKUMAR, SRI.P.J.JOSE, SHRI.T.P.THOMAS, SRI.P.B.SAHASRANAMAN

The necessity of issuing fresh notice under Section 21 of the Arbitration and Conciliation Act for initiating arbitration after an award is set aside.

Headnote:The court examines the enforceability of an arbitration award and the necessity of a fresh notice under Section 21 of the Arbitration and Conciliation Act, 1996 when previous arbitration proceedings were dismissed due to the unilateral appointment of an arbitrator. The court emphasizes that the absence of fresh notice makes the current arbitration request premature and thus closes it without prejudice to future actions. Final ruling underscores the procedural requirement for initiating arbitration proceedings.

ORDER

It is noted that earlier, arbitration proceedings were conducted which culminated in Annexure A12 award dated 05.12.2017. E.P.No.1889 of 2018 was filed seeking execution of the award. However, the EP was dismissed finding that the award is not enforceable as the appointment of the arbitrator was unilateral. Thereafter this arbitration request was filed for initiating a fresh arbitral proceeding. However, it is noticed that after the disposal of the Execution Petition, no fresh notice was issued as contemplated under Section 21 of the Arbitration and Conciliation Act, 1996 .

2. In M/s.Agro Indus Credits Limited v. Mangalan [2026 (1)

KLT 1] this Court held that when an arbitration award is set aside, it is necessary to issue fresh notice under Section 21 of the Arbitration and Conciliation Act, 1996 , to initiate fresh arbitration proceedings. It was further clarified in Manappuram Asset Finance Ltd v. Abdul Saleem A.B. [2026 SCC OnLine Ker 1957] that when Execution Petitions are disposed of holding that the awards were not enforceable, in such situations also, issuing a fresh notice is essential. Therefore, this arbitration request can only be treated as premature and it is accordingly closed, however, leaving it open to the petitioner to issue notice and approach this Court again, if required.

Sd/-

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