SARFAESI Act, Nature Of Secured Asset Continues To Remain Same Even After Being Purchased By Secured Creditor: Kerala High Court

A secured creditor who purchases a secured asset at auction can still use the SARFAESI Act to take possession. SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002): This act empowers banks and financial institutions to recover loans through enforcement of security interest. Case Background: A bank (named Bank X) in Kerala acted as a secured creditor for a borrower (named Borrower Y) who…