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HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
KULDEEP MATHUR
Parasmal, S/o. Jassu Devi And Ishwarchand – Appellant
Versus
Prakash Chandra, S/o. Late Sh. Bhanwar Lal Maroti – Respondent
ORDER :
KULDEEP MATHUR, J.
1. The present Civil First Appeal has been preferred against the order dated 11.05.2023 passed by the learned Additional District Judge No. 2, Bikaner (hereinafter referred to as ‘the learned trial Court’), whereby the application filed under Order VII Rule 11 of the Code of Civil Procedure, 1908 (hereinafter referred to as ‘C.P.C.’), read with Sections 17 , 34, and 35 of the SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT , 2002 (hereinafter referred to as ‘the SARFAESI Act’), was allowed, and consequently, Civil Original Suit No. 08/2023 (CIS No. 25/2023), titled ‘ Parasmal and Ors. v. Prakash Chandra and Ors. ’, was rejected.
2. Learned counsel for the appellants–plaintiffs submitted that the appellants–plaintiffs and respondents–defendants Nos. 1 to 19 are close relatives. The suit property situated at Pabu Chowk, Nai Line, Gangashahar, District Bikaner, is a pattasuda property belonging to late Shri Pannalal Marothi, who had five sons and one daughter, namely, Deepchand, Trilokchand, Kisturchand, Bhanwarlal, Jaskaran, and Jassudevi. Each descendant was entitled to a one-sixth share in the property. However,
Civil Courts retain jurisdiction over partition disputes despite the SARFAESI Act barring jurisdiction in matters concerning measures taken by secured creditors.
Civil courts lack jurisdiction in matters under the SARFAESI Act, as grievances must be addressed to the DRT, per Section 34.
Civil courts cannot entertain suits regarding matters under the SARFAESI Act, including injunctions against auction purchasers, as jurisdiction lies exclusively with the DRT.
Challenges to measures under the SARFAESI Act must be brought before the DRT under Section 17, and the Civil Court's jurisdiction is ousted in such matters.
The civil court retains jurisdiction to adjudicate on the validity of sale and mortgage deeds under the SARFAESI Act, and a plaint cannot be partially rejected under Order VII Rule 11.
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.
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 ....
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