Delhi HC sets aside arbitrator’s order against Indiabulls Housing in Shipra Mall dispute, Real Estate News, ET Real Estate

The Delhi High Court on Tuesday set aside its order reprimanding an arbitrator for exceeding his limits Indiabulls Housing FinanceIssued a sale notice to enforce its security interest of approximately Rs 1,500 crore Shipra Mall In Ghaziabad,

“Whereas an exclusive right is vested in a secured creditor to enforce the security interest, by issuing a sale notice under section 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), that exclusive right cannot be taken away by an order made by an arbitral tribunal,” the Single Judge Bench of Justice Anoop J Bhambhani Said.

set aside by the arbitrator IndiabullsIn June last year, four sale notices were issued under the SARFAESI Act and the Security Interest (Enforcement) Rules, 2002. Shipra Estate, Shipra Hoteland Shipra Leasing approached the NBFC seeking to maintain status quo with respect to the securities provided by them against the loan taken by them.

The Delhi High Court has now ruled that the exercise of the right of a secured creditor to enforce security interest under the SARFAESI Act is not at all arbitrary and there is no discretion vested in the arbitrator which he could have exercised.