The Allahabad High Court, Lucknow Bench, comprising Justice Shekhar B. Saraf and Justice Prashant Kumar, stayed arbitration proceedings initiated by Yes Bank Ltd. against Mahakaleshwar Infratech Pvt. Ltd., holding that a unilaterally commenced arbitration is void ab initio.
The petitioner, through a writ petition, challenged the unilateral invocation of arbitration by Yes Bank, asserting that the bank had initiated proceedings without obtaining its consent. It was further alleged that the Jupiter Council for Arbitration and Mediation, functioning as a self-appointed forum, had passed an interim order directing the seizure of the petitioner’s truck, despite the petitioner having already cleared all outstanding dues.
Petitioner submitted that the unilateral proceeding is void ab initio, as it violates the principles established by the Supreme Court in the judgments of TRF Limited v. Energo Engineering Projects Ltd. (2017) 8 SCC 377 and Perkins Eastman Architects DPC v. HSCC (India) Ltd. (2020) 20 SCC 760.
The Bench concurred with the petitioner’s submissions and held that any arbitration proceeding initiated unilaterally by one party is non est in law, reaffirming the settled position laid down by the Supreme Court.
Accordingly, the entire proceedings under the said arbitration are stayed till further order. The Court directed Yes Bank to maintain status quo over the seized vehicle and restrained creation of any third-party rights pending further orders. The Court also issued notice to the respondents. matter is listed for hearing on December 2, 2025.
Appearances
Petitioner- Avinash Singh Vishen, Shishir Raj
Respondent- —
