M.D. Frozen Foods Exports Pvt. Ltd. vs Hero Fincorp Ltd - Supreme Court Important Judgment

 M.D. Frozen Foods Exports Pvt. Ltd. vs Hero Fincorp Ltd - Supreme Court Important Judgment 2017 - 

 

On 21st September, 2017, in the case of M.D. Frozen Foods Exports Pvt. Ltd. & Ors. v. Hero Fincorp Ltd. [Civil Appeal No.15147 of 2017], it was held that proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) are in the nature of enforcement proceedings, while arbitration is an adjudicatory process”, and that 

“SARFAESI proceedings and arbitration proceedings can go hand in hand.” It was held that the provisions of the SARFAESI Act are “a remedy in addition to the provisions of the Arbitration Act.” “Liquidation of secured interest through a more expeditious procedure is what has been envisaged under the SARFAESI Act and the two Acts are cumulative remedies to the secured creditors.”