Between The Lines... March 2023

I. Delhi High Court: Arbitrator has no jurisdiction to set aside sale notice issued by secured creditor under Section 13(4) of SARFAESI Act.

The High Court of Delhi ("High Court") has, by a common judgement dated February 21, 2023, in a batch of appeals namely, Arb. Appeal (Comm.) No. 36 of 2022, Arb. Appeal (Comm.) No. 37 of 2022 and Arb. Appeal (Comm.) No. 38 of 2022 ("Arbitration Appeals") arising under Section 37(2)(b) (Appealable orders) of the Arbitration and Conciliation Act, 1996 ("Arbitration Act"), filed by Indiabulls Housing Finance Limited ("Indiabulls") and Edelweiss Asset Reconstruction Company Limited ("Appellants") against Shipra Estate Limited, Shipra Hotels Limited and Shipra Leasing Private Limited ("Respondents") respectively, held that arbitrator has no jurisdiction to set aside sale notice issued by secured creditor under Section 13(4) (Enforcement of security interest) of the Securitization and Reconstruction of Financial Assets and