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SANJIB BANERJEE, W. DIENGDOH
Liwel Warshong – Appellant
Versus
Meghalaya Rural Bank – Respondent
| Table of Content |
|---|
| 1. basic facts of the loan and property. (Para 1 , 2 , 3 , 4 , 5) |
| 2. legal questions for court reference. (Para 6 , 7) |
| 3. analysis of rights under the act and mortgage. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 4. civil court jurisdiction limitations established. (Para 15) |
| 5. conclusion on the reference case. (Para 16) |
JUDGMENT
1. The reference here has been made by the Additional Judge of the Additional District Council Court, Khasi Hills, Shillong. Some basic facts need to be noticed before the questions raised by way of this reference are taken up for consideration.
2. According to the respondent bank, which claims to be a scheduled bank and to which the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 applies, it granted a loan to one Hamsarong Langwar in the year 2012. According to the respondent bank, the loan was covered by the mortgage of an immovable property in Mawlai Iewrynghep.
3. It appears that the mortgagor subsequently purported to sell the property to the appellant herein and, in or about 2018, the appellant filed a civil suit before the relevant District Council Court for eviction of the mor
The Securitisation Act grants Debts Recovery Tribunals primacy in adjudicating matters related to secured interests, superseding civil court jurisdiction over such claims.
The borrower is not required to remain inactive until losing physical possession before invoking the statutory remedy, as established by previous Supreme Court judgments.
Point of law: Since any person aggrieved, in terms of Section 17 of the Act of 2002, has the right to approach the appropriate Debts Recovery Tribunal consequent upon the measures being taken by a se....
The court can provide temporary relief to petitioners in possession notice cases under the Act when the Debts Recovery Tribunal is not functioning due to a vacancy in the post of Presiding Officer.
Rejection of plaint - Grant of interim protection would not preclude Civil Court from entertaining an application for rejection of plaint as it can be entertained at any stage of suit
Important Point :Whether secured creditor is entitled to possession of secured asset in possession of tenant from time much before creditor advanced loan?
The jurisdiction of the Civil Court is completely barred in so far as those matters, which would fall for adjudication within the jurisdiction of the Tribunal.
The right of redemption under the Securitisation Act ceases upon auction notice publication, but the Debt Recovery Tribunal can still adjudicate borrower grievances.
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