Case Law Analysis
|Bombay High Court
SARFAESI Act Section 11 | Statutory Arbitration Permissible Between Financial Institution and Bank Even Without Security Interest Creation : Bombay HC
Bombay High Court rules that statutory arbitration under Section 11 of the SARFAESI Act can proceed between a financial institution and a bank over loan transfer disputes, even if the institution has not yet acquired secured creditor status. The judgment clarifies that arbitration is permissible despite the absence of a formal security interest, impacting loan takeover transactions and dispute resolution mechanisms in banking.