Under Section 13(9) of the SARFAESI Act, in the case of

Solution

Section 13(9) provides that in cases of joint financing or consortium financing, no secured creditor is entitled to exercise enforcement rights under Section 13(4) unless the exercise is agreed upon by secured creditors representing not less than 60 per cent in value of the amount outstanding as on the record date. Prior to the 2013 Amendment (Act 1 of 2013), the threshold was three-fourths (75%). It was reduced to 60% to facilitate faster consensus among consortium lenders. The action taken is binding on all secured creditors. 'Record date' is defined as the date agreed upon by secured creditors representing not less than 60 per cent in value of the amount outstanding.