Secured creditors may proceed under SARFAESI measures, but cannot transfer borrower assets by lease, assignment or sale.

Pending adjudication under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002, secured creditors were permitted to continue action under clauses 13(2) and 13(4). The order preserved other remedies available under clause 13(4), but imposed an interim restraint on alienating the borrower's assets by lease, assignment or sale. It also directed transfer of the connected transfer petitions and noted withdrawal of the special leave petition.

---

---

Issues: Whether, pending adjudication, secured creditors could proceed under clause 13(2) and clause 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002, and whether they could alienate the borrower's assets by lease, assignment or sale.

Analysis: The order permits secured creditors to continue action against the borrowers under clause 13(2) and clause 13(4) pending further proceedings, but places an interim restraint on parting with the borrower's assets by lease, assignment or sale. The order also preserves the availability of other recourses under clause 13(4), while the connected transfer petitions are ordered to be transferred and the special leave petition is withdrawn.

Conclusion: Secured creditors were allowed to proceed under clause 13(2) and clause 13(4), but were restrained from transferring the borrower's assets by lease, assignment or sale.

---