In Brief
Borrowers M.D. Frozen Foods Exports Pvt. Ltd. challenged a High Court order allowing their lender, Hero Fincorp (an NBFC), to proceed under the SARFAESI Act while simultaneously pursuing arbitration. The Supreme Court held that SARFAESI enforcement proceedings and arbitration are complementary remedies and can proceed together. The Court ruled that the SARFAESI Act applies to all live debts existing when the Act becomes applicable to the creditor, regardless of when the loan was created or when declared an NPA. The Act provides procedural, not substantive, remedies and does not retrospectively impair rights. The appeal was dismissed with costs.
The lawyer headnote and full judgment text are available to registered users.