Simultaneous Application Of SARFAESI And The Arbitration Act

In the matter of Indiabulls Housing Finance Limited v. Deccan Chronicle Holdings Limited & Ors., 2018(2)Bom.C.R. 739, the apex court addressed the issues of whether the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI") can be invoked by the amalgamated company when the original lender does not fall within the purview of SARFAESI but the amalgamated company does and whether invocation of arbitration proceedings under a loan agreement bars the initiation of proceedings under SARFAESI for recovery of amounts advanced as loan. It was held that the amalgamated company being an assignee of a debt through amalgamation could invoke the provisions of SARFAESI and both arbitration and proceedings under SARFAESI can be invoked simultaneously with one remedy not barring the other.