THE VAISH COOPERATIVE ADARSH BANK LIMITED vs UNION BANK OF INDIA & ORS.

Judgment text excerpt

$~28 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision : 08.05.2026 + ARB.P. 392/2026 & I.A. 5801/2026 (For Delay 02 days in re- filing the petition) THE VAISH COOPERATIVE ADARSH BANK LIMITED .....Petitioner Through: Mr. Ravi Data, Mr. Rajesh Sharma and Mr. Karan Mehta, Advocates. versus UNION BANK OF INDIA & ORS. .....Respondents Through: Mr. Samarendra Kumar, Mr. Madhurendra Kumar, Mr. Nitin, Ms. Nisha, Ms. Soumya and Ms. Kajal, Advocates for Respondent No. 1. CORAM: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR % JUDGEMENT (ORAL) 1. The present Petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 19961, read with Section 11 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest, 20022, seeking the appointment of a Sole Arbitrator to adjudicate the disputes that are stated to have arisen inter se the parties. 2. In view of the fact that two financial institutions namely the 1 A&C Act 2 SARFAESI Act Signature Not Verified Digitally Signed By:HARVINDER KAUR BHATIA Signing Date:11.05.2026 ARB.P. 392/2026 Page 1 of 3 20:14:32 Petitioner and the Respondents herein had rival claims over the same property, the Hon’ble Supreme Court in the Judgment of Bank of India v. Sri Nangli Rice Mills (P) Ltd. [(2025) 9 SCC 225] has held that such inter se disputes between financial institutions/secured creditors should be resolved by resort to the provisions of Section 11 of the SARFAESI Act read with the A&C Act. 3. The learned counsel appearing for the parties, jointly and on instructions, submit that they are ad idem that the present dispute be referred to arbitration. 4. Material on record indicates that the valuation of the present dispute is stated to be approximately Rs. 50 lakhs. 5. Learned cou