The Supreme Court has held that NBFC is entitled to initiate both arbitration proceedings and SARFAESI proceedings with respect to a loan account, and that the ‘doctrine of election’ was not attracted in such a scenario. It was further clarified that there was no illegality  in a Non-Banking Financial Company invoking SARFAESI Act for recovery of loan arrears with respect to an account classified as Non-Performing Asset(NPA).

October 8th, 2017