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SUBODH ABHYANKAR
Murtaza Malik – Appellant
Versus
LIC Housing Finance Limited – Respondent
JUDGEMENT
1. This appeal has been preferred by the appellants/plaintiffs under section 96 of the Code of Civil Procedure against the judgement and decree dated 26.11.2022, passed by the Fourth Additional District Judge, Indore in Civil Suit No.921-A/2019.
2. In brief, the facts of the case are that the appellants/plaintiffs filed a civil suit for declaration simpliciter against the respondent/LIC Housing Finance Limited seeking the following relief :--
“The Plaintiffs therefore pray for a decree declaring that the structure of the Building constructed on the Plot No.1 & 2, Kibe Compound, Indore is not mortgaged with the Defendant;
Cost of the suit be also awarded to the Plaintiffs.”
3. The facts in brief are that the plaintiffs obtained a loan of Rs.12 Crore from LIC Housing Finance Ltd. and for the same, the disputed land situated at Plot No.1 & 2, Kibe Compound, Indore was kept as a collateral security with the LIC Housing Finance Ltd. The case of the plaintiffs is that as the plaintiffs defaulted in making the payment, a notice was affixed on their premises by the defendant/LIC Housing Finance stating that the LIC has the charge over the property and no transaction in respect
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.
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 civil court retains jurisdiction to adjudicate on the validity of sale and mortgage deeds under the SARFAESI Act, and a plaint cannot be partially rejected under Order VII Rule 11.
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.
Once a party submits to the jurisdiction of the DRT and suffers an order, they cannot pursue their remedy before the Civil Court.
Rejection of plaint – Jurisdiction of Civil Court in respect of matters which do not fall within jurisdiction of DRT or DRAT under Sections 17 and 18 of SARFAESI Act is not ousted or barred under pro....
The jurisdiction of the civil court is excluded in matters related to the classification of loan accounts as NPA under the SARFAESI Act.
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