SARFAESI: Only secured creditors can initiate action against borrower

Trishul Developers Vs L & T Housing Finance Limited (Karnataka High Court) Conclusion: SARFAESI Act provides only secured creditors to initiate action against the borrower and a demand made by a person or legal entity who was not the secured creditor was definitely prejudicial to the interest of assessee. Held: Assesseee-partnership firm availed financial assistance from the first respondent-Financial Institution to the tune of Rs.20,00,00,000/ for the purpose of completion of construction of projects. On default, when the first respondent initiated proceedings under the provisions of Th...