Ajay Rastogi JUDGMENT
Ajay Rastogi, J.
1. The instant appeal is directed against the impugned judgment and order dated 27th June, 2019 passed by the Division Bench of the High Court of Karnataka at Bengaluru in Writ Petition No. 22137 of 2019 wherein the High Court while reversing the finding returned by the Debt Recovery Appellate Tribunal in its order dated 16th April, 2019, upheld the order of the Debt Recovery Tribunal dated 23rd March, 2018 quashing the demand notice dated 14th June, 2017 served on the Respondents (borrower) Under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the "SARFAESI Act") followed with the possession notices dated 09th November, 2017 and 10th November, 2017.
2. Brief facts of the case are that the Appellant is a Housing Finance Company under National Housing Bank Act, 1987 and is notified as Financial Institution by the Department of Finance (Central Government) in exercise of the powers conferred by Sub-clause (iv) of Clause (m) of Sub-section (1) of Section 2 of the SARFAESI Act. The Appellant indeed falls within the definition of "secured creditor" under the provisions of the SARFAESI Act and is entitled to initiate measures under the provision of the SARFAESI Act for enforcement of security interest created on the secured assets by the Respondents (borrower/guarantor) in favour of the Appellant (secured creditor).
3. Section 2(zd) of the SARFAESI Act which defines "secured creditor", reads as follows:
2. Definitions. - (1) In this Act, unless the context otherwise requires, --
....
(zd) "secured creditor" means-
(i) any bank or financial institution or any consortium or group of banks or financial institutions holding any right, title or interest upon any tangible asset or intangible asset as specified in Clause (l);
(ii) debenture trustee appointed by any bank or financial institution; or
(iii) an asset reconstruction company whether acting as such or managing a trust set up by such asset reconstruction company for the securitisation or reconstruction, as the case may be; or
(iv) debenture trustee registered with the Board appointed by any company for secured debt securities; or
(v) any other trustee holding securities on behalf of a bank or financial institution,
in whose favour security interest is created by any borrower for due repayment of any financial assistance.
....
4. The first Respondent is a partnership firm registered under the Partnership Act, 1932 and is dealing in the