The judgment established that a suit filed by a borrower in respect of measures taken under Section 13 of the SARFAESI Act is not maintainable before the Civil Court, unless there is evidence of fraud or absurdity in the actions of the secured creditor.

1. Admit. With the consent of the Learned Counsel for the parties heard forthwith.

2. The Revisionary Jurisdiction of this Court is invoked against the order dated 02.05.2015 passed by the Learned 7th Joint Civil Judge Senior Division, Nashik, by which order the application Exh.19 filed by the Applicant herein i.e. Defendant No.1 to the suit in question invoking Section 9A of the CPC to question the jurisdiction of the Civil Court came to be rejected and the Trial Court ruled that it has jurisdiction to try and entertain the suit in question.

3. The facts which are necessary to be cited for the adjudication of the above Civil Revision Application can in brief be stated thus. The parties would be referred to as per their status in the suit. The Plaintiff i.e. the Respondent No.1 herein is having a printing industry and has factories in Satpur, Ambad and Gonde in Nashik District. The Plaintiff applied for various loan facilities including Working Capital Credit Facility to the Defendant No.1 i.e. Applicant herein. The Plaintiff was granted Working Capital Credit Facility to the tune of Rs.6,00,00,000/ (In short “WC Facility”), Non Fund Based Credit Facility by way of Letter of Credit (One time) facility of Rs.30,00,00,000/as a sub limit of Foreign Currency Term Loan/External Commercial Borrowings (In short “LC Facility”) and Derivative Facility of Rs.3,00,00,000/( In short “Derivative Facility”). On the Plaintiff committing default in making payment towards the various loan facilities granted to it, the accounts of the Plaintiff with the Defendant No.1 became irregular and were declared as NonPerforming Assets (NPA) on 31.03.2011. The Defendant No.1 thereafter recalled the entire loan facilities vide letter dated 18.01.2013 addressed to the Plaintiff with a copy of the same marked to the Directors and Guarantors of the Plaintiff. By the said letters/recall notices the Defendant No.1 called upon the Plaintiff and its Directors and Guarantors and demanded payment of the outstanding dues aggregating to Rs.43,68,83,887.30. A statutory notice was thereafter issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (For short “SARFAESI Act”) came to be issued on 15.07.2013. The outstanding dues from the Plaintiff as on 30.06.2013 were in the sum of Rs.45,51,32,765.90. The Defendant No.1 thereafter took measures under Section 13(4) of the SARFAESI Act in relation to which the Plaintiff has filed a Securitization Application No.109 of 2014 and the same is pending before the DRTII, Mumbai. The Defendant No.1 has filed Original Application No.47 of 2014 under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (For short “RDDBFI Act”), wherein the Plaintiff has not filed its Written Statement and the same is pending before the DRTII, Mumbai. In so far as the outstanding dues are concerned, the same as on 31.01.2014 are in the sum of Rs.49,03,43,568.12.

4. It is after the notice dated 30.04.2014 came to be issued under the SARFAESI Act that the Respondent No.1 herein filed Special Civil Suit No.533 of 2014 in the Court of the Learned Civil Judge Senior Division, Nashik. The reliefs sought in the said suit read thus:

“a. To order and decree that the Defendant No.1 shall pay to the Plaintiff the sum of Rs.22,90,39,138.00 (Rupees twenty two crores ninety lacs thirty nine thousand and one hundred thirty eight only) and also to order and decree that both the Defendants jointly and severally shall pay to the Plaintiff the sum of Rs.100,00,00,000.00 (Rupees hundred crores only) together with interest thereon @ 18% p.a. from the date of this suit until final realization thereof.

b. To declare that the Defendant No.1 is not entitled to recovery any amount from the Plaintiff.

c. To restrain the Defendant No.1, its officers, agents and any persons claiming through them from selling, transferring, alienating and or creating any sort of third party inte