2024 Supreme(Online)(Ker) 74891
IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.S. Sudha, J
PIOUS MATHAI – Appellant
Versus
BHARATHI N SHA – Respondent
RSA NO. 1018 OF 2019
For the Appellants/Petitioners: N.RATHEESH, SMT.SUMA RATHEESH
For the Respondents: T.M.CHANDRAN, T.M.MATHAI, SRI.REJI GEORGE, SHRI.NASEER MOIDU, SRI.BINOY DAVIS, SRI.DEEPAK JOY.K.
The civil court lacks jurisdiction in partition suits concerning secured assets under Section 34 of the SARFAESI Act.
Headnote:The appeal concerns the interpretation of the SARFAESI Act, specifically Section 34's applicability to the civil court jurisdiction over suits for partition of property. The trial court decreed for partition in favor of the plaintiff, but the first appellate court reversed, citing jurisdictional bars under the SARFAESI Act. The plaintiff contended the trial court's decision was well-reasoned, whereas the opposite parties relied on precedent establishing that civil suits are not maintainable when the property in question is secured assets, thus affirming the appellate court's findings. The appeal was dismissed with findings against the plaintiff on substantial questions of law regarding civil court jurisdiction in the presence of SARFAESI proceedings.
| Table of Content |
|---|
| 1. facts of property ownership and legal heirs. (Para 1 , 2) |
| 2. claims regarding property and contesting parties. (Para 3 , 4 , 5) |
| 3. arguments regarding jurisdiction and maintainability. (Para 6 , 7 , 8) |
| 4. judgment of the trial court and its reversal. (Para 10 , 11) |
| 5. legal precedents cited concerning sarfaesi jurisdiction. (Para 12 , 13 , 14 , 15 , 16) |
JUDGMENT
This second appeal under Section 100 read with Order XLII Rule 1 CPC filed by the additional second plaintiff/appellant is against the judgment and decree dated 22/07/2019 in A.S.No.17/2015 on the file of the Subordinate Judge's Court, Cherthala, which appeal in turn is against the judgment and decree dated 29/11/2014 in O.S.No.275/2010 on the file of the Munsiff Court, Cherthala. The parties and the documents will be referred to as described in O.S.No.275/2010.
2. The plaint schedule property belonged to Dumminku Mathaikutty, who died in the year 1974. Annakkutty, his wife predeceased Mathaikutty. The plaintiff Mariyamma and her brother Kunjukunju are the only legal heirs of Mathaikutty. On the death of Mathaikutty the plaint schedule property no.1 devolved on the sole plaintiff and late Kunjukunju, who were in joint possession and enjoyment of the property. Defendants 4 to 9 are the legal heirs of Kunjukunju. Kunjukunju during his life time was looking after the plaint schedule properties and thereafter the properties was in the possession and enjoyment of the sole plaintiff. On 17/05/2010, a notice was seen affixed on plaint schedule item no.1 property stating that the third defendant had bid in the auction proceedings conducted pursuant to proceedings initiated by the Debt Recovery Tribunal (DRT), Ernakulam and that the second defendant bank is going to take possession of the property. On enquiry it was found that two settlement deeds had been executed by Kunjukunju in favour of his son, the 9th defendant, in respect of the plaint schedule properties. The 9th defendant had availed loans from both the first and the second defendant banks relating to plaint schedule item no.1 and item no.2. He failed in repaying the amounts pursuant to which both the banks initiated proceedings against the secured asset and obtained orders in their favour. Pursuant to the second defendant obtaining orders relating to plaint schedule item no.1, the property was auctioned to the third defendant and thereafter Ext.B9 sale certificate issued in his favour. Plaint schedule item no.1 was sold by the first defendant bank to one Prasanth Simpson. When the first plaintiff came to know about the DRT proceedings, she filed an objection before the DRT. According to the plaintiff the documents executed by her brother Kunjukunju are void and not binding on her and so she is entitled to ½ share in the property. The plaint schedule properties have so far not been mutated in the name of the 9th defendant and the same continues in the thandapper of late Mathaikkutty. The plaintiff is still in possession and enjoyment of the plaint schedule properties. Hence the suit seeking partition of the plaint schedule property and allotment of ½ share to the plaintiff.
3. During the course of the proceedings the sole plaintiff died. The 6th defendant claimed that the plaintiff had executed a will in his favour and hence on his request was transposed as the additional second plaintiff.
4. The first defendant filed written statement contending that the suit was not maintainable in the light of Section 34 of the Securitisation and Re-construction of Financial Assets and Enforcement of Security Interest Act, 2002 ('the SARFAESI Act'). In fact, the plaintiff had approached the DRT, Ernakulam and filed S.A.No.60/2009 raising similar allegations. The first defendant also disputed the allegation of the sole plaintiff that she is the sister of Kunjukunju. The plaint schedule property no.2 was mortgaged by the 9th defendant with the first defendant bank when he availed a loan. However, the 9th defendant faile