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IN THE HIGH COURT OF ALLAHABAD
Sandeep Jain
Noushad Begam – Appellant
Versus
Punjab National Bank – Respondent
JUDGMENT :
Sandeep Jain, J.
1. The instant first appeal under section 96 CPC has been filed by the plaintiff against the impugned judgment and decree dated 08.5.2025 passed by the court of Civil Judge(Senior Division) Bulandshahar in O.S. No. 382 of 2024 Smt.Noushad Begam vs. Punjab National Bank and others, whereby the application of defendant no.3 under Order 7 Rule 11(d) CPC has been allowed and consequently, the plaint has been rejected on the ground that the suit was barred under Section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002( SARFAESI Act, 2002).
2. The facts leading to the present appeal in a nutshell are as under:-
(A)The plaintiff-appellant filed O.S. No. 382 of 2024 in the trial court against Punjab National Bank(defendant no.1) and Harish Kumar Verma(defendant no.5), the proprietor of Messers Dharamveer Jewellers(defendant no.4) with the averments that she is a very poor lady, whose husband Sabir was a labourer employed in the occupation of cleaning, polishing and repairing gold and silver jewellery with defendant no.4. She further averred that in the beginning of year 2017 defendant no.5, Harish KumarVe
Fraud allegations must provide specific particulars to circumvent the jurisdictional bar under Section 34 of the SARFAESI Act, 2002; vague claims are insufficient.
Civil courts lack jurisdiction under Section 34 of the SARFAESI Act for matters within the DRT's purview, and vague fraud allegations do not suffice to maintain a civil suit.
Civil Courts have jurisdiction in SARFAESI Act matters only when the secured creditor has not initiated actions under the Act. Limitation laws apply strictly to such actions.
Civil Courts retain jurisdiction to hear suits alleging fraud against secured creditors, despite Section 34 of the SARFAESI Act, provided specific allegations are made.
(1) When suit is barred by any law, plaintiff cannot be allowed to circumvent that provision by means of clever drafting.(2) Mere mentioning and using word ‘fraud’/’fraudulent’ is not sufficient to s....
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 lack jurisdiction in matters under the SARFAESI Act, as grievances must be addressed to the DRT, per Section 34.
Point of Law : When there is no embargo on civil court to record evidence on preliminary issue, dismissal of suit on concluding that plaintiff did not produce material in support of his allegation wo....
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