#loan assignment

A bank qualifies as a ‘bank’ under the SARFAESI Act and can enforce its provisions even when the loan was originated by an NBFC not classified as a financial institution. This extends SARFAESI recovery powers to assigned secured debts, affecting banks acquiring such loans and the borrowers whose loans are transferred.

The Delhi High Court held that an arbitration clause remains enforceable even when a party does not appear, and it may appoint a sole arbitrator under Section 11(6). This allows loan-assignment disputes to proceed in arbitration without delay, affecting lenders and assignees.