Interim protection in SARFAESI recovery was granted to a guarantor, with status quo maintained pending further orders.

Interim protection was considered in a SARFAESI recovery context where the petitioner, as guarantor, objected to direct enforcement while the principal borrower had not been fully proceeded against. On the material then available, the Court preserved the status quo by restraining further action under the recovery provision and directed that existing possession be maintained pending further orders. The operative effect was a temporary bar on enforcement against the guarantor until the matter was revisited.

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Issues: Whether interim protection should be granted against recovery measures under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where the petitioner was the guarantor and the borrower had not been fully proceeded against.

Analysis: The petitioner's grievance was that the bank had not shown adequate steps taken against the principal borrower and had proceeded directly against the guarantor. In view of the material then available, the Court found it appropriate to preserve the status quo and restrain further action under the recovery provision until further orders.

Conclusion: Interim restraint against action under section 13(4) was granted in favour of the petitioner, and any existing possession was directed to be maintained pending further orders.

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