A. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), Section 2(1)(zf), 13(2)(4) – SARFAESI proceedings – Security interest -- Mortgage of property – Requirement of – Guarantee deed -- For Invocation of SARFAESI Act presupposes the existence of a validly created security interest in favour of the lender, mortgage is a must – Guarantee deed lacked the authority to invoke the SARFAESI Act against the Company – SARFAESI proceedings quashed.

(Para 25-27, 36, 37)

B. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), Section 2(1)(zf)(zd),  13(2)(4), 17 – Constitution of India, Article 226, 227 -- SARFAESI proceedings – Secured interest/ Secured Creditor is pre-requisite -- Writ jurisdiction – Alternative remedy – Availability of – Effect of -- No security agreement by which security interest has been created in favour of a secured creditor -- High Court held in favour of the Company and allowed the writ petition, despite availability of an alternative remedy u/s 17 of the SARFAESI Act as Corporation failed to establish that any security interest was created in its favour either by the Company (borrower) or the Council (guarantor) and/or that the Corporation was a “secured creditor” – Held, once it have been held that the SARFAESI Act was erroneously invoked by the Corporation and that such invocation was without jurisdiction, there is no question of relegating the Company to the Debts Recovery Tribunal under Section 17 of the SARFAESI Act – Judgment of Division Bench, upheld.

(Para 13, 36, 37)