It is not open for a Borrower to invoke the jurisdiction of Sole Arbitrator without invoking remedy under Section 17 of SARFAESI Act, 2002 and Merely because a Borrower happens to be an MSME would not be governed by the provisions of MSME Act 2006 – Indian Bank (Erstwhile Allahabad Bank) Vs. Morris Samuel Christian – Gujarat High Court
A notice under Section 13(2) of the SARFAESI Act, 2002. Aggrieved by
these notices, the Borrower approached the Sole Arbitrator who by an
interim award granted a stay of the notices under the SARFAESI Act.
Hon’ble High Court held that under the mechanism of the SARFAESI Act,
on a notice issued under Section 13, remedy is provided to any person
who is aggrieved by the measures so taken for seeking resort to
Section 17 of the Act. Having failed to invoke such provisions as
required under Section 17 of the Act, on this first count alone, it
was not open for the Borrower to invoke the jurisdiction of the Sole
Arbitrator as was so done.
