K.S.RADHAKRISHNAN, A.K.SIKRI
Jagdish Singh – Appellant
Versus
Heeralal – Respondent
What is the jurisdiction of civil courts in securitization matters under the SARFAESI Act? What are the rights of any person aggrieved by measures taken under Section 13(4) of the SARFAESI Act?
Key Points: - Appellant was highest bidder and auction purchaser of land sold by Bank of India under SARFAESI Act for loan recovery from M/s Guru Om Automobiles [1000533700001][1000533700002] (!) (!) (!) (!) (!) - Respondents 1-5 filed civil suit claiming the auctioned land as joint family property, seeking declaration of title, partition, and injunction [1000533700002] (!) (!) (!) (!) (!) [1000533700003] - DRT dismissed challenge to sale notice by respondents 7-9 under Section 17, order attained finality; civil court initially dismissed suit under Order 7 Rule 11 CPC citing Section 34 bar [1000533700003][1000533700004][1000533700005] - High Court allowed appeal, holding civil court has jurisdiction to decide title dispute over alleged joint family property [1000533700006] (!) - Section 17 allows any person aggrieved by measures under Section 13(4) to apply to DRT, expression "any person" includes those affected like plaintiffs [1000533700014][1000533700016][1000533700017] (!) - Section 34 bars civil court jurisdiction over matters DRT or Appellate Tribunal can determine, including measures under Section 13(4) [1000533700018] (!) [1000533700019][1000533700021] - SARFAESI Act overrides other laws like CPC Section 9 where inconsistent [1000533700021] - Supreme Court held High Court erred, civil court has no jurisdiction; proper remedy is Section 17 before DRT [1000533700022] (!) - Appeal allowed, High Court judgment set aside [1000533700022]
JUDGMENT
K.S. Radhakrishnan, J.
Leave granted.
2. The appellant herein was the auction purchaser, being the highest bidder for Rs.18,01,000/-, in respect of the land admeasuring one acre in Khasra Nos.104/3 and 105/2, Patwari Halka No.4, Village Segaon, Anjad Road, Barwani, M.P., which was brought to sale for recovery of loan amounts under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the Securitisation Act”). The auction was confirmed by the bank on 08.11.2005 on the appellant’s depositing Rs.2,90,250/- by 09.11.2005 and remaining 75% within 15 days. The appellant was not put in possession of the property in question even though the auction was confirmed.
3. The appellant – auction purchaser then came to know that Respondent Nos.1 to 5 herein have filed a Civil Suit No.16A/07 in the Court of District Judge, Barwani District for a declaration of title, partition and permanent injunction against Respondent Nos.7 to 9 and others in which the appellant and the bank were also made parties. Following are the reliefs sought for in the said civil suit:
“(A) Decree may be passed in favour of the plaintiff
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