Resolution of Dispute in Asset Reconstruction Company

A dispute in an asset reconstruction company is a disagreement between the ARC and the borrower or any other party involved in the asset reconstruction process. Disputes can arise over a variety of issues, such as the valuation of the assets, the terms of the restructuring agreement, or the payment of fees.

How are disputes in asset reconstruction companies resolved?

Disputes in asset reconstruction companies can be resolved through a variety of methods, such as:

  • Negotiation: This is the most common method of resolving disputes. The parties involved in the dispute try to reach an agreement through discussion and compromise.
  • Mediation: This is a process in which a neutral third party helps the parties involved in the dispute to reach an agreement.
  • Arbitration: This is a process in which the dispute is resolved by an impartial arbitrator. The arbitrator’s decision is binding on the parties involved in the dispute.
  • Litigation: This is the process of resolving a dispute through the courts. This is the last resort, as it is expensive and time-consuming.

MCQs on Resolution of Dispute in Asset Reconstruction Company

  1. Which of the following is not a method of resolving disputes in asset reconstruction companies?
    • Negotiation
    • Mediation
    • Arbitration
    • Litigation
    • Conciliation
    • The correct answer is (e). Conciliation is not a method of resolving disputes in asset reconstruction companies. It is a process in which a neutral third party helps the parties involved in the dispute to reach an agreement, but the third party does not have the power to make a binding decision.
  2. What is the most common method of resolving disputes in asset reconstruction companies?
    • Negotiation
    • Mediation
    • Arbitration
    • Litigation
    • All of the above.
    • The correct answer is (a). Negotiation is the most common method of resolving disputes in asset reconstruction companies.
  3. What is the purpose of resolving disputes in asset reconstruction companies?
    • To ensure that the asset reconstruction process is not delayed.
    • To protect the interests of all the parties involved in the asset reconstruction process.
    • To ensure that the value of the assets is maximized.
    • All of the above.
    • The correct answer is (d). The purpose of resolving disputes in asset reconstruction companies is to achieve all of the above objectives.