IMPORTANT POINT
Civil Court has no jurisdiction to take cognizance of proceedings initiated under SRFAESI Act.

Narayan Shukla, J.—Mr. Atul Kumar Singh, learned Advocate put in appearance on behalf of opposite party No.1 and files a short counter-affidavit on his behalf. The same is taken on record.

2. Heard Mr. Gopal Krishna Srivastava, learned counsel for the petitioner and Mr. Sandeep Dixit, learned counsel for opposite party No.2 and Mr. Atul Kumar Singh, learned counsel for opposite party No.1.

3. The petitioner has challenged the order dated 19.5.2009, passed by the Civil Judge (Senior Division), in Original Suit No.163 of 2009, inter alia, on the ground that the order passed by the Civil Judge is without jurisdiction as the suit filed before him itself is not maintainable in view of Section17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinabove referred to as the SRFAESI Act, 2002). The Civil Court has taken cognizance against the proceedings initiated under Section 13(2) and 13(4) of the SRFAESI Act, 2002, whereas against the proceeding initiated under the aforesaid section, the only remedy is to file an application before the Debts Recovery Tribunal under Section 17 of the SRFAESI Act. Learned counsel for the petitioner further submits that the suit is barred by Section 34 of the SRFAESI Act, 2002. Section 35 speaks that the provisions of this Act shall have overriding effect over other laws, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.

Learned counsel for the petitioner further invites the attention of this Court towards Section 31 of the RDDBFI Act, 1993, which provides that every suit or other proceeding pending before any Court immediately before the date of establishment of a Tribunal under this Act, being a suit or proceeding the cause of action whereon it is based is such that it would have been, if it had arisen after such establishment, within the jurisdiction of such Tribunal, shall stand transferred on that date to such Tribunal provided that nothing in this subsection shall apply to any appeal pending as aforesaid before any Court. In this background he submits that the proceeding of the Civil Court as well as the order passed therein is without jurisdiction and deserves to be quashed.

4. On the other hand Mr. Sandeep Dixit, learned counsel for the opposite parties invites the attention of this Court towards the order passed by this Court in Writ Petition No. 8077 (M.B.) of 2008 in the subject-matter and submitted that the Division Bench of this Court itself opened option to the petitioner to file regular suit or objection in response to notice issued under sub-section (2) of Section 13 of the SRFAESI Act, 2002. Accordingly, the opposite parties have rightly exercised the option opened for them and filed the suit, which has been entertained by the Civil Court, thus there is nothing wrong in the proceeding and once the jurisdiction has been conferred by the Court, nobody can raise objection against the proceeding. Mr. Dixit by inviting the attention towards the relief sought in the suit submitted that the opposite parties have filed the suit for issuing a mandatory injunction to the bank to accept the total money of loan and close the loan account and return the title of the property mortgaged against the loan and further submitted that the relief sought in the suit cannot be granted by the Debts Recovery Tribunal, therefore, the opposite party Nos. 1 and 2 rightly chose to rue the suit.

5. In reply Mr. Gopal Krishna Srivastava, the learned counsel for the petitioner submitted that there are several loan accounts against which the property has been mortgaged as a collateral security, therefore, unless and until all the loans are repaid, the title of the documents cannot be redeemed and thus he submitted that this is only an incidental relief, which can be sought for before the Tribunal itself.

6. He further submitted that in t