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2025 Supreme(P&H) 612

PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
VIKRAM AGGARWAL, J.
Atam Parkash - Appellant
Vs.
Allahabad Bank - Respondent
CR-1543-2019 (O&M)
Decided On : 06-11-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. Manuj Nagrath, Advocate
For the Respondent:Mr. Lekh Raj Sharma, Advocate, Mr. Abhishek Sharma, Advocate and Mr. Ashish Chaudhary, Advocate

Civil Courts retain jurisdiction to hear fraud allegations only when not covered by the DRT's jurisdiction in SARFAESI Act cases.

Headnote:(A) SARFAESI Act, 2002 - Section 34 - Jurisdiction of Civil Court - The issue of jurisdiction for Civil Courts in cases involving allegations of fraud raised in the context of SARFAESI Act proceedings was examined. The court upheld that the Civil Court has jurisdiction only when fraud raises issues not within the DRT's ambit. (Paras 12, 13, 14).

(B) Civil Procedure Code, 1908 - Order 7 Rule 11 - Rejection of plaint - The rejection of the plaint was upheld on grounds that allegations were vague with intent to delay recovery proceedings under SARFAESI Act. (Paras 10-15).

Facts of the case:
The petitioner, claiming fraud regarding a guarantee deed, filed a suit which was subsequently rejected; the case hinged on the jurisdiction concerning fraud allegations vis-a-vis SARFAESI Act.

Findings of Court:
The courts below acted within their jurisdiction in dismissing the plaint as the allegations raised did not warrant a review in Civil Court.

Issues: Whether a Civil Court retains jurisdiction in fraud cases under SARFAESI Act.

Ratio Decidendi: The court underscored that merely citing fraud does not shield parties from established provisions barring Civil Court jurisdiction, particularly under SARFAESI Act.

Result: Revision petition dismissed.

Table of Content
1. the issues leading to jurisdiction disputes under sarfaesi act. (Para 1 , 2)
2. petitioner's statements about fraud and their implications for jurisdiction. (Para 7 , 8)
3. court's exploration of jurisdictional authority of civil court versus drt. (Para 10 , 12 , 13 , 14)
4. the conclusive dismissal of the revision petition by the court. (Para 15 , 16)

JUDGMENT :

Vikram Aggarwal, J.

CM-16984-CII-2025

Prayer in the present application, preferred under Section 151 CPC , is for placing on record the final report dated 20.03.2025 submitted under Section 173 Cr. P.C. as Annexure P-12.

For the reasons mentioned in the application, the same is allowed. Final report dated 20.03.2025 is taken on record as Annexure P-12.

The Registry is directed to place the same at an appropriate place on the case file.

CR-1543-2019

The instant revision petition assails the judgment dated 19.12.2018 (Annexure P-9) passed by the Court of Additional District Judge, Jalandhar, dismissing the appeal against the order dated 19.11.2018 (Annexure P-7) passed by the Court of Civil Judge (Jr. Divn.), Jalandhar, vide which the application filed by the respondent-defendant bank under Order 7 Rule 11 of the Code of Civil Procedure, 1908 (for short the ' CPC ') was allowed and the plaint was rejected.

2. The facts, as emanating from the revision petition, are that a suit (Annexure P-1) was instituted by the petitioner-plaintiff (Atam Parkash), praying for the following relief:-

'It is therefore respectfully prayed that a decree for Declaration to the effect that the letter of guarantee/Guarantee Deed shown to be dated 02.02.2015 alleged to have been executed between plaintiff and defendant in respect of sale deed bearing document No. 9145 dated 28.01.1974 duly registered with the Sub Registrar, Jalandhar of the property bearing No, 780/16 measuring 10 Marla 26 Sq. Ft Approx comprised in Khatauni No. 347, Khasra No, 23489/20294, /911 (1-3) situated in Mohalla Gopal Nagar, Jalandhar owned by the father of the plaintiff is result of fraud, fabrication and forged one and is illegal, false, null and void and not binding upon the rights, title and interest of the plaintiff/father of the plaintiff namely Tarsem Raj (since deceased) in respect of the property mentioned above may kindly be granted in favour of the plaintiff and against the defendants. A decree for the declaration to the effect that the supplemental letter of mortgagor confirming deposit of title deeds through constructive delivery shown to be dated 02.02.2015 in respect of Power of Attorney bearing document No. 2067 dated 27.08.2004 duly registered with the Sub Registrar, Jalandhar and Sale deed bearing Document No. 9145 dated 28.01.1974 duly registered with the Sub Registrar, Jalandhar of property bearing No. 780/16 measuring 10 Marla 26 Sq. Ft Approx comprised in Khatauni No. 347, Khasra No. 23489/20294, /911 (1-3) situated in Mohalla Gopal Nagar, Jalandhar is a result of fraud, fabrication and forged one and is illegal, false, null and void and not binding upon the rights, title and interest of the plaintiff/father of the plaintiff (since deceased) in respect of the property mentioned above may kindly be granted in favour of the plaintiff and against the defendants.

AND

A decree for Permanent injunction restraining the defendant from taking the possession and from alienating the property bearing No. 780/16 measuring 10 Marlas 26 Sq. Ft. Approx comprised in Khatauni No. 347, Khasra No. 23489/20294, /911 (1-3) situated in Mohalla Gopal Nagar, Jalandhar may kindly be granted in favour of the plaintiff and against the defendants.

AND

A decree for Mandatory Injunction directing the defendant to return/handover the sale deed vide document No. 9145 dated 28.01.1974 duly registered with the Sub Registrar, Jalandhar which is in the name of the father namely Tarzem Raj since deceased and Power of Attorney bearing document No. 2067 dated 27.08.2004 of the property bearing No, 780/16 measuring 10 Marla 26 Sq. Ft

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