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Successor-In-Interest Entitled To Recovery Under SARFAESI Act After Merging With Financial Institution

In INDIABULLS HOUSING FINANCE LIMITED vs M/S. DECCAN CHRONICLE HOLDINGS LIMITED AND OTHERS, the Supreme Court has held that where an entity granting a loan is not a ‘banking company’ or a ‘financial institution’ under clauses (d) and (m), respectively, of Section 2(1) of the SARFAESI Act of 2002, but subsequently merges with a ‘financial institution’, the successor-in-interest shall be deemed to be a ‘secured creditor’ for the purpose of Section 2(1)(zd) of the Act and shall be entitled to effect recovery in accordance with Section 13 of the Act.

 http://www.livelaw.in/lender-merges-financial-institution-successor-interest-entitled-recovery-sarfaesi-act-rules-sc-read-judgment/

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