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DELHI HIGH COURT
ANUP JAIRAM BHAMBHANI
Bell Finvest India Limited – Appellant
Versus
AU Small Finance Bank Limited – Respondent
| Table of Content |
|---|
| 1. request for arbitration under a&c act. (Para 1 , 2) |
| 2. petitioners' arguments for arbitration rights. (Para 3 , 4) |
| 3. respondent contests arbitrability based on sarfaesi act. (Para 5) |
| 4. court discusses jurisdiction and merits. (Para 6 , 7) |
| 5. clarification on non-arbitrability of disputes. (Para 8 , 9) |
| 6. petition dismissed; applications disposed. (Para 10 , 11) |
JUDGMENT
Anup Jairam Bhambhani J.
By way of the present petition under section 11 of the Arbitration & Conciliation Act, 1996 ('A&C Act' for short), the petitioners seek appointment of an arbitrator to adjudicate upon the disputes that are stated to have arisen with the respondent from Rupee Facility Agreement dated 26.04.2019 ('Rupee Facility Agreement').
2. Notice on this petition was issued on 07.04.2021; whereupon counter-affidavit dated 05.07.2021 was filed by the respondent.
3. Mr. Sanjeev Bhandari, learned counsel for the petitioner has premised his submissions on section 11 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act' for short), which, counsel submits, creates a statutory arbitration agreement between the parties. For c
Disputes between lenders and borrowers are non-arbitrable under the SARFAESI Act, which necessitates adherence to statutory remedies, exclusively available through the Debt Recovery Tribunal.
Disputes covered by special laws, creating special rights to be adjudicated and enforced by special forums, are non-arbitrable.
The court upheld the validity of arbitration clauses in financial agreements, ruling that disputes arising under such agreements must be resolved via arbitration, even amidst ongoing SARFAESI Act pro....
The main legal point established in the judgment is that the claims of banks and financial institutions under the RDDB Act are non-arbitrable, and the disputes regarding determination of debt due fel....
Section 11 SARFAESI mandates arbitration for disputes between bank and financial institution over non-payment due including interest in loan takeover, even if one not secured creditor, as triggered b....
Disputes regarding loan defaults under the SARFAESI Act are non-arbitrable and must be adjudicated by Debt Recovery Tribunals, emphasizing that civil court jurisdiction is excluded where statutory pr....
The main legal point established in the judgment is the non-arbitrability of disputes under the SARFAESI Act, 2002 and RDB Act, 1993, and the lack of provision for review under the Arbitration and Co....
Section 7 of Act provides that arbitration agreement means an agreement by parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of def....
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