Jurisdiction of DRT under sections 13 and 17 is exclusive. Where borrower defaulted and Bank initiated recovery under SARFAESI, Civil Court had no jurisdiction to entertain borrower’s suit challenging NPA classification or seeking injunction. Held that Section 34 expressly bars jurisdiction of civil courts in matters relating to SARFAESI. DRT alone has authority over disputes concerning security interest. Order of Civil Court granting relief to borrower was without jurisdiction and liable to be set aside.
Regional Manager v. Punya Coal Road Lines [2023] 154 taxmann.com 599 (Bom)(HC)
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
S. 34 : SARFAESI Act-Jurisdiction-DRT-Civil Court-Only DRT which would have exclusive jurisdiction to try such matters, to total exclusion of Civil Court. [S. 13, 17]
Leave a Reply