Page 22 - Banking Finance December 2018

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i it in ar itration arifies e tor s ri ht n er arfaesi
c arifies de tor s ri ht nder arfaesi he pre e o rt ast ee r ed that
a se
a de tor can approach the de ts reco er tri na R
ertain c a ses in contracts co d e
nder the ec ritisation ct arfaesi at the sta e of pos
a i o s
session notice the sec red creditor.
d e s p i t e
he co rt as considerin a f Bench d ent of the
the ein
aha ad i h o rt in the case indon or e td s
drafted
tate. ar ier t o hi h co rt Benches had differed on the estion hether a
e perienced
a e r s . orro er can o e the R e en efore ph sica possession of assets is ta en
he Bo a i h o rt as con an s financia instit tions in the e ercise of their po ers nder the ct.
fronted ith one s ch in its d ent herefore the estion as referred to a f Bench of the hi h co rt. o
a Bha ati onstr ction o s the pre e o rt has r ed that the f Bench d ent as ron . he se
a are n ineers B i ders td. c red creditor can ta e possession of the assets of the orro er hen there is
he c a se stated n case of an dis a defa t after fo o in the proced re aid do n in the r es.
p te o r ana in director s deci
sion i e fina and indin on oth r itration hen there is onsorti
the parties an disp te sha e
hen there is a consorti a ree ent et een an ndian co pan and a for
refferred to ar itration or an o rt.
ei n entit a c ai can e fi ed on in the na e of
hen disp tes arose one part
the consorti and not separate the pre e
anted ar itration. hi e the other
o rt r ed in the d ent s M ai Metro.
asserted that the a o e c a se ade
n this case a consorti a ree ent as si ned
the ana in director s decision fi
et een the ndian co pan and a Ma a sian fir
na . f disp tes persisted there as
for constr ctin a onorai s ste in M ai. is
an option to o for ar itration or
p tes arose et een the consorti and the M ai Metropo itan Re iona
co rt. it ar ed. he hi h co rt
e e op ent nthorit .
stated that the intention of the par
ties as c ear and it pro ided for he ade separate c ai s efore the a thorit t the atter re ected the
ar itration. he d ent added c ai s. he consorti o ed the pre e o rt see in internationa co
he co rt has to enco ra e the ercia ar itration as defined in the r itration and onci iation ct. he co rt
parties to refer the disp te to ar i re ected it as there co d not e an internationa co ercia ar itration e
tration and hi e interpretin an ca se the ndian co pan is the ead partner the s per isor oard constit ted
ar itration c a se. it haste adopt a nder the consorti a ree ent ade it c ear that the ead partner rea has
i era approach. the deter inin oice in that it appoints the chair an of the said oard.

22 | 201 | DECEMBER | B CE