Arbritration & SARFAESI Act
AMISH
(Querist) 31 January 2011
This query is : Resolved
Sir,
Is it Possible for a Multi State Cooperative Bank to start Arbitration against its borrower even after serving notice of SARFAESI Act.
Thanks
Amish
s.subramanian
(Expert) 31 January 2011
Yes. You can do it but it would amount to waiver of the rights to proceed under SARFAESI ACT.
AMISH
(Querist) 31 January 2011
Dear
Expert Mr. S.Subramanian
Thanks for your prompt reply.
Is their any specific relaxation with any of law. i.e. Arbitration or SARFAESI Act.... if yes than please let me under which law and if You know any Judgments of HC or SC please let me know.
Thanks Again
Devajyoti Barman
(Expert) 01 February 2011
Referring to arbitration may noty maount to waiver of proceeding under SARFAECI Act as arbitration can be adopted parallely with other recourses of law.
AMISH
(Querist) 01 February 2011
Dear Expert
Mr.Devajyoti Barman
I got your point and there is provision of Arbitration proceedings with SARFAESI Act.
What Law say with its sub section no 11
11. Resolution of disputes
Where any dispute relating to securitisation or reconstruction or non-payment of any
amount due including interest arises amongst any of the parties, namely, the bank or financial
institution or securitisation company or reconstruction company or qualified institutional buyer,
such dispute shall be settled by conciliation or arbitration as provided in the Arbitration and
Conciliation Act, 1996 (26 of 1996), as if the parties to the dispute have consented in writing for
determination of such dispute by conciliation or arbitration and the provisions of that Act shall
apply accordingly.
But Is there any order by HC or SC on such case of Multi state Schedule bank and its borrower.