Section 11 of the SARFAESI Act provides for resolution of disputes among parties such as banks, financial institutions, ARC and qualified buyers. What mechanism does it prescribe?

Section 11 of the SARFAESI Act deals with resolution of disputes arising among parties (bank/FI, ARC, qualified buyer) relating to securitisation, reconstruction or non-payment. It provides that such disputes shall be settled by conciliation or arbitration as provided in the Arbitration and Conciliation Act, 1996, as if the parties had consented in writing for determination by conciliation or arbitration. The provisions of the Arbitration Act apply accordingly. This makes arbitration the default dispute resolution mechanism between institutional parties under SARFAESI, reflecting the commercial nature of such disputes. This provision does not, however, cover disputes between a bank and a retail borrower.