There Can Be Simultaneous Proceedings Under SARFAESI And Arbitration Act For Recovery Of Loan Arrears

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