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K. R. SHRIRAM, SENTHILKUMAR RAMAMOORTHY
EIH Limited – Appellant
Versus
Balaji Hotels & Enterprises Ltd. – Respondent
JUDGMENT :
(Delivered by Justice Senthilkumar Ramamoorthy)
Balaji Constructions Private Limited (Balaji Constructions) and The East India Hotels Limited (East India Hotels) entered into Technical Services Agreement dated 26.10.1988 in relation to the establishment of a hotel by Balaji Constructions. On the same date, Project Consultancy Service Agreement and Royalty Agreement were entered into by and between Balaji Constructions and Oberoi Hotels Pvt. Ltd. (Oberoi Hotels). Balaji Constructions was subsequently reconstituted as Balaji Hotels and Enterprises Limited (Balaji Hotels) and East India Hotels was renamed as EIH Limited (EIH). By a later agreement dated 12.01.2000 between Balaji Hotels and EIH, it was recorded that the hotel unit would be transferred by Balaji Hotels to a separate company and that the sum of Rs.9 crore, which had been paid by EIH to Balaji Hotels, would be repaid by issuance of equity shares or fully convertible debentures to EIH in the transferee company.
2. Thereafter, an agreement dated 04.02.2002 was entered into between EIH and Oberoi Hotels, on the one hand, and Balaji Hotels and Balaji Industrial Corporation Limited (BICL), on the other. Under this agre
Agreements remain valid unless payment conditions are met; civil suits challenging secured transactions are barred under SARFAESI Act.
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 ....
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.
Civil courts' jurisdiction is barred under Section 34 of the SARFAESI Act in matters that can be determined by Debt Recovery Tribunals.
The SARFAESI Act does not render a sale agreement void if executed without the secured creditor's consent; rather, it allows for specific performance as long as the secured creditor's rights are pres....
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