In Brief
Borrowers secured loans against immovable properties that later became non-performing assets. After the lender was notified as an NBFC covered by the SARFAESI Act, it issued notices for enforcement and filed for arbitration. The borrowers challenged the simultaneous proceedings, arguing SARFAESI could not apply to pre-existing debts created before notification. The Supreme Court held that SARFAESI proceedings are enforcement mechanisms (not substantive law) applicable to all live debts when the Act becomes applicable to the lender. Arbitration and SARFAESI proceedings can proceed simultaneously as complementary remedies. The Court rejected the retroactivity argument, finding the Act provides expeditious recovery procedures, not new obligations. Appeal dismissed.
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