Sections 9 and 11 of the Arbitration Act & SARFAESI Act – Arbitrator OR DR Tribunal – Petitioner is non-banking financial institution giving loans for purchase of vehicles.
The petitioner is notified as financial institution under SARFAESI Act vide notification dated 27.8.2018.
The petitioner had advanced loan facilities to the respondents in both the matters for vehicles on Loan-cum-Hypothecation-cum-Guarantee Agreements. Each of the Agreements provided for Arbitration and also reference to the RDDB & SARFAESI Acts are also made.
The respondents committed defaults. The petitioner filed section 11 application and also section 9 application apprehending that the vehicles may even be disposed by the respondents.
The objection of jurisdiction was raised by the respondents on the ground that the petitioner being a financial institution, applications ought to have been filed in Debts Recovery Tribunal and their applications under the Arbitration Act are not maintainable.
Section 37 of SARFAESI Act provides that the application of other laws is not barred but the said Act in addition to any other law being in force. Thus, the Arbitration Act and SARFAESI Act operate in tandem.
Order dated 20.12.2023 in Commercial Arbitration Petition (L) Nos.8654 and 25821 of 2022 – Tata Motors Finance Solutions Limited Vs. Naushad Khan and connected matter of Parveen Travels Ltd and another.
