Hdfc Bank Ltd. v. Cent Bank Home Finance Ltd.
Case brief
What is this about?
The Debts Recovery Tribunal held that disputes between financial institutions regarding securitisation, reconstruction, or non-payment of amounts due must be resolved via arbitration under Section 11 of the SARFAESI Act, depriving the DRT of jurisdiction.
What did the court decide?
Parties directed to resolve disputes via arbitration under Section 11 of the SARFAESI Act; interim orders to continue.
What the court decided
Court of the Presiding Officer Debts Recovery Tribunal, Jaipur
Item No. 27
Case No.SA/198/2025
HDFC BANK LTD Vs CENT BANK HOME FINANCE LTD.
Date: 27.03.2026. Proceedings through hybrid mode Present:
Shri Vineet Sharma, Counsel for the Applicant
Shri Arjun Singh Shekhawat, Counsel for the Respondent Bank/FI
In the above matter the dispute relates to inter-se financial institutions and as per judgment of Hon’ble Supreme Court passed in the matter of Bank of India vs M/S Sri Nangli Rice Mills Pvt. Ltd on 23 May,2025 Hon’ble Supreme Court has held as under:
G. FINAL CONCLUSION
124. We summarize our final conclusion as under:
(I) Section 11 of the SARFAESI Act deals with resolution of disputes relating to securitisation, reconstruction or non-payment of any amount due between the bank or financial institution or asset reconstruction company or qualified buyer.
Issues for consideration
3 issues framed by the court
Whether DRT has jurisdiction over disputes between financial institutions regarding non-payment of amounts due.
Whether Section 11 of the SARFAESI Act mandates arbitration between financial institutions and FIs regarding securitisation or reconstruction disputes.
Whether Section 11 of the SARFAESI Act applies where two financial institutions stand in a lender-borrower relationship.
Parties & counsel
- applicant
HDFC BANK LTD
- respondent
CENT BANK HOME FINANCE LTD
Coram
Vimal Gupta
Case details
As recorded by the court registry
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