ORDER SARFAESI ACT – SECTION 34 JURISDICTION BAR

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SARFAESI ACT – SECTION 34 JURISDICTION BAR

IN THE COURT OF THE CIVIL JUDGE (S.D.), [PLACE]
Regular Civil Suit No. __ of 20__

ORDER BELOW EXH. __

  1. The defendant bank has preferred this application contending that the suit challenges measures taken under Section 13(4) of the SARFAESI Act and therefore is barred by Section 34 of the Act.

  2. From paragraph __ of the plaint, it is clear that the plaintiff seeks declaration and injunction restraining the bank from proceeding under the SARFAESI Act pursuant to possession notice dated __.

  3. Section 34 of the SARFAESI Act bars the jurisdiction of civil courts in respect of matters which the Debts Recovery Tribunal is empowered to determine.

  4. The Hon’ble Supreme Court in
    Jagdish Singh v. Heeralal
    has held that civil court jurisdiction is completely barred where the action pertains to measures under Section 13(4).

  5. On meaningful reading of the plaint, the grievance raised by the plaintiff squarely pertains to SARFAESI measures. The appropriate remedy lies before the DRT under Section 17 of the Act.

  6. The statutory bar is therefore apparent from the plaint itself.

ORDER

Application Exh. __ is allowed.
The plaint is rejected under Order VII Rule 11(d) CPC.

No order as to costs.

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