The main legal point established in the judgment is the jurisdiction of the Civil Court in relation to matters covered by the Recovery of Debts due to Banks and Financial Institutions Act.

The first defendant in O.S. No. 195 of 22008 on the file of the District Munsifcum-Judicial Magistrate Court, Kodaikanal is the revision petitioner. The first respondent herein filed the above suit for a declaration that the common order passed in I.A. Nos. 819 to 821 of 2008 in R.P. NO. 280 of 2007 in DRC No. 15 of 2005 in TA NO. 698 of 2007 dated 25.8.2008 by the Recovery Officer, Debt Recovery Tribunal, Madurai is in contravention of the provision of Rule 11 of the Second Schedule to the Income Tax Act 1961 consequentially set aside the said order and other consequential proceedings.

2. The revision petitioner is a Nationalized Bank, filed O.S. No.76 of 1987 on the file Subordinate Court, Periyakulam against the first respondent and others for recovery of Rs.37,64,328.55/-on the basis of the loan availed by the defendants and mortgage executed by the defendant and in that suit, preliminary decree was passed on 20.3.1991 and final decree was passed on 19.7.1996 in I.A. No.543 of 1993 in O.S. No. 76 of 1987 and as per the final decree, mortgaged properties are directed to be sold for the purpose of realization of the amount payable to the revision petitioner bank. Therefore, for the realization of the said amount, the revision petitioner filed O.A. No. 406 of 1999 before the Debt Recovery Tribunal, Chennai for issuance of Recovery Certificate based on the final decree, as in the meanwhile, Act 51 of 93 Recovery due to Banks and financial Institutions Act 1983 came into force and in respect of any matter covered under the Act proceedings are to be initiated only before the Tribunal as per the Act. The said O.A. No. 406 of 1999 was transferred to Debt Recovery Tribunal II, Chennai and renumbered as O.A. No 717 of 2001 and the Presiding Officer, Debt Recovery Tribunal II, Chennai passed final order on 4.7.2001 and declared that the applicant bank is entitled to a Recovery Certificate as per the said Act for a sum of Rs.76,59,904.98/-with interest at the rate of 6% per annum with quarterly rests.

3. Thereafter, due to change of jurisdiction the said O.A. was renumbered as T.A. No.1912 of 2002 on the file of Debt Recovery Tribunal, Coimbatore and the Recovery Certificate was issued vide D.R.C. No. 15/2004 dated 9.2.2004 and Recovery Proceedings were initiated and thereafter jurisdiction was conferred on the Debt Recovery Tribunal, Madurai and therefore, the case was transferred to Debt Recovery Tribunal, Madurai and renumbered as T.A. 698 of 2007.The Presiding Officer, the Debt Recovery Tribunal, Madurai drawn up proclamation of sale by proceedings dated 31.8.2007 in D.R.C. NO. 15/2004/RP 280/2007. Earlier when the case was pending before the Debt Recovery Tribunal Coimbatore in T.A. NO. 1912 of 2002, the first respondent filed I.A. Nos. 842 and 843 of 2006 to reopen the case and pass suitable orders on the basis of the facts stated in the affidavit and by common order, both the applications were dismissed by the learned Presiding Officer, Coimbatore by order dated 3.1.2007. The first respondent challenged the order passed in I.A. No. 843 of 2006 in T.A/ No. 1912 of 2002, the Debt Recovery Tribunal, Coimbatore in CRP (NPD) No. 3274 of 2007 and the Principal Bench of this Court dismissed the Revision holding that the petitioner has to avail appeal remedy as per Section 30 of the Act and granted liberty to the petitioner therein to file appeal as provided under Section 30 of the said Act. The first respondent herein who was the revision petitioner in the above revision did not file any appeal and filed I.A. Nos. 379, 380, 488, 489 and 490 of 2007 for various reliefs before the Debt Recovery Tribunal Chennai in T.A. No. 698 of 2007. All those applications were dismissed by order dated 5.6.2008.

4. Thereafter, the defendants herein filed I.A. Nos. 819 to 821 of 2008 in R.P. NO. 280 of 2007 in DRC NO. 15 of 2004 in TA NO. 698 of 2007 on the file of the Debt Recovery Tribunal, Madurai against the said proclamation under Rule