IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.K.Ilanthiraiyan, J.
State Bank of India, Stressed Assets Management Branch – Petitioner
Versus
S.R. Shyam Sundar and ors. – Respondents
C.R.P. (PD) No.2128 of 2018 and C.M.P.No.16299 of 2016
Decided On : 01-06-2021
Recovery of Debts due to Banks and Financial Institution Act, 1993 - Section 18 - SARFAESI Act, 2002 – Sections 34 and 17(4A) - injunction in respect of the suit property - Recovery of Debts due to Banks and Financial Institution - Guarantors for the loan, - Order of the eviction - Transfer of Property Act - Section 65A(2)(e) - Whether lease or tenancy - Whether leased with or without the land on which they stand - Whether the Plaint allegations are made by trying to bring Civil Suit within the parameters laid down by Supreme Court - Whether genuine grounds have been made out to attract the jurisdiction of Civil Court - Whether there is genuine grievance to be redressed in the Civil Court - Whether a cause of action for the residual claims/reliefs warrant continuance of the suit - Suit property which was mortgaged by borrower through the second and third respondent, being the guarantors for the loan, on memorandum of deposit of title deed registered in the year 2007 - When it being so, as per Section 65A(2)(e) of the Transfer of Property Act, no lease deed can be executed for more than three years for the property is under mortgage - SARFAESI proceedings, the District Collector passed order of eviction and the same was challenged by the first respondent in S.A.No. before Debt Recovery Tribunal - Same was allowed and aggrieved by the same, the petitioner filed appeal before the Debt Recovery Tribunal in same was partly allowed by an order respect of eviction is concerned, the Debt Recovery Appellate Tribunal upheld the order of the eviction passed by District Collector - Suit properties were already sold out in the Court auction, in favour of the fourth respondent herein - Petitioner also preferred a Civil Revision Petition as against partial dismissal of the order passed by the Debt Recovery Appellate Tribunal before this Court and it is pending in SR stage in C.R.P.SR.No. - Court below dismissed the petition for rejection of plaint on the ground that cause of action arose in the present suit is bundle of fact and on the grounds raised by the petitioner – Held, clear averments have been made in the plaint to the effect that the plaintiff came across the document, which is sought to be declared null and void, only just prior to the filing of a previous suit for injunction, which was filed in 2013 and on advice, the plaintiff has chosen to file the present suit for declaration and other reliefs - Averments also proceed to state that within three years from the date of knowledge, suit came to be filed and hence, the suit is not barred by limitation - If all the contesting defendants claim that suit is barred by limitation, it is a matter that can be decided not solely based on the plea made in the averments made in plaint, but by considering the evidence to be adduced on both sides - When such is the case, Rule 11(d) of Order VII CPC shall not get attracted - learned counsel appearing for first respondent vehemently contended that other than lease hold right, the suit is filed for other cause of action viz., he obtained license to run business of LPG distribution with BPCL - First respondent had put up construction in the suit property and commenced business from the month respect of the construction is concerned, first respondent is the owner of the building and as such except due process of law, the valid tenant cannot be vacated - Entire cause of action are bundle of facts and it cannot be rejected in limini - Miscellaneous petition is closed - Civil Revision petition stands allowed
ORDER :
This Civil Revision Petitions is directed as against the fair and decreetal order dated 28.04.2018 passed by the learned Principal District Munsif, Alandur, in I.A.No.1151 of 2017 in O.S.No.415 of 2017, thereby dismissing the petition filed for rejection of plaint.
2. The petitioner is the third defendant and the first respondent is the plaintiff. The first respondent filed suit in O.S.No.415 of 2017 for bare injunction in respect of the suit property. While pending the suit, the petitioner filed petition in I.A.No.1151 of 2017 for rejection of plaint and the same was dismissed. Aggrieved by the same, the present Civil Revision Petition.
3. The learned counsel appearing for the petitioner would submit that the civil Court has no jurisdiction to try suit in relation to the SARFAESI matters, since there is a statutory bar under Section 18 of the Recovery of Debts due to Banks and Financial Institution Act, 1993 and Section 34 of SARFAESI Act, 2002. The amendment made under SARFAESI Act which enables the tenant to file application under Section 17(4A) of SARFAESI Act before the Debt Recovery Tribunal. Whereas in the case on hand, the first respondent filed suit claiming the tenancy right from the second and third respondents herein.
3.1. The suit property which was mortgaged by the borrower through the second and third respondent, being the guarantors for the loan, on memorandum of deposit of title deed registered in the year 2007. When it being so, as per Section 65A(2)(e) of the Transfer of Property Act, no lease deed can be executed for more than three years for the property which is under mortgage. In fact, under the SARFAESI proceedings, the District Collector passed order of eviction on 10.04.2018 and the same was challenged by the first respondent in S.A.No.192 of 2019 before the Debt Recovery Tribunal. The same was allowed and aggrieved by the same, the petitioner filed appeal before the Debt Recovery Tribunal in RA(SA).No.27 of 2020 and the same was partly allowed by an order dated 19.04.2021. In respect of the eviction is concerned, the Debt Recovery Appellate Tribunal upheld the order of the eviction passed by the District Collector.
3.2. In fact, the suit properties were already sold out in the Court auction, in favour of the fourth respondent herein. The petitioner also preferred a Civil Revision Petition as against the partial dismissal of the order passed by the Debt Recovery Appellate Tribunal before this Court and it is pending in SR stage in C.R.P.SR.No.45717 of 2021. Unfortunately without considering those facts, the Court below dismissed the petition for rejection of plaint on the ground that cause of action arose in the present suit is bundle of fact and on the grounds raised by the petitioner, the plaint cannot be rejected as such, the petition for rejection of plaint is not maintainable and dismissed.
3.3. He further submitted that memorandum of deposit of title deed of the year 2007, whereas the first respondent entered into lease agreement with the second and third respondents in the year 2013, that too for the period of 16 years. While entering into the lease agreement without due diligence viz., without verifying the encumbrance certificate in respect of the property, they entered into the lease agreement. Though the first respondent averred so many allegations in the plaint, the crux of the suit is only in respect of the proceeding initiated under the SARFAESI Act by the petitioner herein. Therefore, the suit is clearly barred by law and it is liable to be rejected.
3.4. In fact, after dismissal of the petition for rejection of plaint, the Court below dismissed the interim injunction petition filed by the first respondent and aggrieved by the same, the first respondent filed Civil Miscellaneous appeal before the appellate Court and it is pending. Therefore, the pendency of the suit would not serve any purpose and it is nothing but only to prevent the petitioner and the auction purchaser from taking po
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