There Can Be Simultaneous Proceedings Under SARFAESI And Arbitration Act For Recovery Of Loan Arrears: Delhi HC [Read Order]

The Delhi High Court, on Thursday, held that arbitration and SARFAESI proceedings can be resorted to simultaneously for recovery of loan arrears. "As the SARFAESI Act and the Arbitration /Debt Recovery Act are held to be complementary in nature and the doctrine of election has been held to be not applicable, it cannot be said that if a party has invoked one remedy, it is debarred from invoking. "As the SARFAESI Act and the Arbitration /Debt Recovery Act are held to be complementary in nature and the doctrine of election has been held to be not applicable, it cannot be said that if a party has invoked one remedy, it is debarred from invoking the other during the pendency of the first one. The Bank, on the other hand, had contended that the SARFAESI Act provides for an alternate remedy to financial institutions for recovering loan amount.