IN THE HIGH COURT OF BOMBAY
K.K. TATED, J.
Milan Vrajlal Bhavani — Appellant
Versus
Yes Bank Ltd. And others — Respondent
Appeal From Order (Stamp) No. 12679 of 2019; Civil Application (Stamp) No. 12680 of 2019
Decided on : 04-05-2019
Constitution of India, 1950 - Article 323 - Civil Procedure Code, 1908 - Sections 11 and 9A - Debts Recovery Act - Sections 19, 14, 17 and 18 - Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 - Sections 34, 13 and 22 - Auction Of Properties - By this appeal from order appellant original plaintiff is challenging order passed by city civil court in notice of motion in short cause suit holding that appellant is not entitled to any relief in said notice of motion on ground that suit itself is not maintainable - Learned counsel for appellant submits that court below erred in coming to conclusion that civil court has no jurisdiction to take any action against respondent bank - He submits that appellant original plaintiff filed short cause suit for various reliefs including restraining respondent bank from acting pursuant to notice for auction of properties of plaintiff - He further submits that they also claimed declaration from trial court that invocation by respondent bank original plaintiff is an act of fraud - He submits that plaintiff has claimed following reliefs in suit filed before trial court - Held, We have come across such suits dime and dozen times - What however is disturbing in present case is casual manner in which interim injunctions are granted in both suits making provisions - It appears that interim injunctions are granted even without reading prayers in application for interim relief - On basis of these submissions learned counsel for respondent bank submits that as on today they have to recover with interest from appellant original plaintiff - Therefore there is no question of granting any interim relief at this stage - Bare reading of copy of plaint as well as application filed by appellant for interim relief before this court clearly shows that appellant wants stay to order passed by learned chief metropolitan magistrate - It is to be noted that even in present civil application appellant has made specific prayer that interim relief injunction be granted in favour of applicant appellant restraining respondent bank commissioner to take action against them as per order - Objection raised by counsel for appellant about maintainability of suit filed in civil court and relying on judgment of apex court prima facie do not give any right for interim protection in favour of appellant - Appeal is dismissed.
JUDGMENT :
K.K. Tated, J.
Heard.
2. Today the matter is kept on board i.e. 04.05.2019 Saturday in Chamber at 1 p.m. at the request of the learned counsel for the appellant who mentioned the matter before this court yesterday 03.05.2019 at 6.45 p.m. in Chamber.
3. By this Appeal from Order, the appellant original plaintiff is challenging the order dated 16.04.2019 passed by Bombay City Civil Court at Bombay in Notice of Motion No.1488 of 2019 in Short Cause Suit No.1710 of 2018 holding that the appellant is not entitled to any relief in the said Notice of Motion on the ground that the Suit itself is not maintainable in view of Section 34 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (in short 'the said Act').
4. The learned counsel for the appellant submits that the court below erred in coming to the conclusion that Civil Court has no jurisdiction to take any action against the Respondent bank in view of section 34 of the said Act. He submits that appellant original plaintiff filed Short Cause Suit No.1710 of 2018 for various reliefs including restraining Respondent bank from acting pursuant to the notice under section 13(2) and 13(4) of the said Act for auction of the properties of the plaintiff i.e. Flat No.22, Parle Nandanvan CHS,6 Ansari Road, Vile Parle West, Mumbai 400 056. He further submits that they also claimed declaration from the Trial Court that, invocation of said Act by the Respondent bank, original plaintiff, is an act of fraud. He submits that plaintiff has claimed following reliefs in the Suit filed before the Trial Court:
B. That it be held and declared by this Hon'ble Court that the instrument, the Loan Agreement dated__________________, is null, void.
C. Or in the alternative, it be declared that the Defendants have committed breach of Contract and are invested of no enforceable rights as against the plaintiff, nay, that it be declared that the Plaintiff owes no money to the Defendant and thus is entitled to a negative declaration that no amount is due and further that the respondent bank is duty bound to disburse the further funds to the plaintiffs in terms of the contract entered between the plaintiff and the defendant which are mutually binding and further a perpetual mandatory and prohibitory injunction restraining and prohibiting the respondent from taking recourse to any legal proceedings, whatsoever as against the plaintiff for the enforcement of the rights what so ever if any, be invested in them so too, in any manner interfering with the estate, right, possession, enjoyment of the Plaintiff of his Properties on which the respondent may claim legal, statutory or equitable right;
D. If this Hon'ble Court be pleased to declare that the Defendants have committed breach of contract, then the Defendants be directed to remedy the breach by specific performance;
E. this Hon'ble Court be pleased to declare that the Plaintiff does not owe any due to the Defendants Bank;
F. The mandatory injunction be granted directing the Bank to forthwith restore the financial assistance promised to the Plaintiff;
G. A perpetual prohibitory injunction restraining the Defendant nos.1 to 4, from acting in furtherance of the notice for auction of the properties of the Plaintiff Parle Nandanvan CHS, Flat No.22, 6 Ansari Road, Vile Parle West, Mumbai-400056, purportedly under section 13(2) and 13(4), of SARFAESI be granted;
H. That it be declared that declaration of the accounts of the Plaintiff as NPA is void;
I. That it be further declared that the RBIs Guidelines have no force of law and hence null and void being without any authority of law;
J. To declare that the forum contemplated under the RDDBFI Act 1993, the SARFAESI Act 2002, and the insolvency and Bankruptcy Code 2016, have no existence and force in law as the same are in
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