ArbP-62/2022-HC

Arbitrability and Non-arbitrability of disputes under SARFESI Act – M/s Diamond Entertainment Technologies Pvt. Ltd. & Ors. Vs. Religare Finvest Ltd. Through Its Authorized Officer – Delhi High Court

Hon’ble High Court held that the resolution of disputes through arbitration is recognized even under the SARFAESI Act and there is no absolute bar of referral of such disputes which may be covered under the SARFAESI Act by way of arbitration. As has been argued, that even though HDFC Bank Ltd. has been over ruled, the law as enunciated in M.D. Frozen Foods still is good law. Though M.D. Frozen Foods is mentioned specifically in Vidya Drolia but it has not been overruled and there is no ground to review the impugned Order. To sum up, firstly the review petition is not maintainable under law; secondly the grounds for review as agitated in the application are more in the realm of appeal and not amenable to review. Thirdly, there is no error apparent on face of record nor are the findings in contravention of the observations made in Vidya Drolia which was the main ground for seeking review.

Arbitrability and Non-arbitrability of disputes under SARFESI Act – M/s Diamond Entertainment Technologies Pvt. Ltd. & Ors. Vs. Religare Finvest Ltd. Through Its Authorized Officer – Delhi High Court Read Post »

Merely because proceedings under SARFAESI Act, 2002 has been initiated, Arbitration of disputes does not get per se barred. The provisions of the SARFAESI Act, 2002 are a remedy in addition to the adjudication under the Arbitration and Conciliation Act, 1996 – Diamond Entertainment Technologies Pvt. Ltd. Vs. Religare Finvest Ltd. Through Its Authorised Officer – Delhi High Court

Hon’ble High Court held that the SARFAESI Act and RDDB Act are complementary to each other and merely because proceedings in the SARFAESI Act have been initiated would not be a ground to oust the jurisdiction of the RDDB Act. The provisions of the SARFAESI Act, 2002 are a remedy in addition to the adjudication under the Arbitration and Conciliation Act, 1996 as an alternate forum to Civil Court/DRT. Once the remedy of recovery remains the parties still have the freedom to choose the forum alternate to and the regular Court or DRT as the case may be for adjudicating their inter se disputes. All disputes relating to the “Right in Personam” are arbitrable and therefore, the choice is given to the parties to choose the alternative forum. A claim of money by a Bank or financial institution cannot be treated as a right in rem and thus, taking it out of the realm of arbitrability.

Merely because proceedings under SARFAESI Act, 2002 has been initiated, Arbitration of disputes does not get per se barred. The provisions of the SARFAESI Act, 2002 are a remedy in addition to the adjudication under the Arbitration and Conciliation Act, 1996 – Diamond Entertainment Technologies Pvt. Ltd. Vs. Religare Finvest Ltd. Through Its Authorised Officer – Delhi High Court Read Post »

Scroll to Top