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KRISHNA RAO
Swastik Project Private Limited – Appellant
Versus
Ratnakar Commercial Private Limited – Respondent
JUDGMENT :
KRISHNA RAO, J.
1. The defendant no. 1 has filed the present application being G.A. No. 7 of 2022 praying for rejection of plain under Order VII Rule 11 of the Civil Procedure Code, 1908.
2. The plaintiff has filed the present suit in C.S. No. 109 of 2018 praying for the following reliefs:
(b) Order for delivery of vacant, peaceful and khas possession of the said property being premises Nos. 201, 202 and 203 Old China Bazar Street, Kolkata-700001 morefully described in the Schedule written hereunder to the defendant no. 6.
(c) Declaration that the defendant No. 1 has no right, title or interest in the said property being the premises No. 201, 202 and 203 Old China Bazar Street, Kolkata-700001 morefully described in the schedule hereunder.
(d) Declaration that the defendants Nos.2 and 3 had also never acquired and could not have acquired any right, title
Fraud claims are not within the jurisdiction of the Debt Recovery Tribunal, allowing civil suits to proceed despite jurisdictional bars under the RDDBFI Act.
The bar under Section 34 of the SARFAESI Act cannot be extended to claims involving collusion and fraud, which are better addressed before the Civil Court.
Once a party submits to the jurisdiction of the DRT and suffers an order, they cannot pursue their remedy before the Civil Court.
Application against measures to recover secured debts – Jurisdiction - Jurisdiction of Civil Court is not ousted. However, Civil Courts have to be extremely cautious while granting any interim order ....
Point of law: Even when the allegations made in the plaint are taken to be correct as a whole on their face value, if they show that the suit is barred by any law, or do not disclose cause of action,....
Civil courts can adjudicate suits involving fraud and complex factual disputes, despite the SARFAESI Act's jurisdictional limitations.
Civil Courts retain jurisdiction to hear suits alleging fraud against secured creditors, despite Section 34 of the SARFAESI Act, provided specific allegations are made.
Civil Courts retain jurisdiction to hear fraud allegations only when not covered by the DRT's jurisdiction in SARFAESI Act cases.
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