Section 34 of the SARFAESI Act prohibits civil courts from granting injunctions related to matters under its jurisdiction, emphasizing that such disputes must be handled by established tribunals.

JUDGMENT

A.M.Shaffique, J.

1.This original petition if filed challenging Exhibit P4 order by which the Family Court rejected the application for interim injunction. The petitioner had filed an original petition seeking for a declaration that she is the rightful owner of the property which has been mortgaged in favour of the 3rd respondent- bank by the petitioner as well as respondents 1 and 2. The petitioner is the wife of the 1st respondent and the 2nd respondent is the son of the 1st respondent and the petitioner. The marriage between the couple was solemnised on 11.10.1979 and they have two children. She claimed that she was provided with 65 sovereigns of gold ornaments. Her contention was that the gold ornaments were sold promising that the property will be purchased from the sale consideration in the name of the petitioner. However, contrary to the said O.P.(FC) No.404/17 promise, the 1st respondent purchased the property in his name. Hence, she claimed right in respect of the above property. After filing the original petition, she also sought for temporary injunction to restrain the respondents from forcefully evicting her from the petition schedule property.

2.The 3rd respondent is the bank. They have taken steps under the the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the SARFAESI Act'), since the loan amount has not been paid in time. The bank had also taken steps under Section 14 of the SARFAESI Act and an Advocate Commissioner had been appointed to take possession of the secured asset. It is at this stage, the original petition had been filed and the petitioner had sought for interim order.

3.It is trite law that when proceedings are taken under the SARFAESI Act, no civil court shall grant any injunction, remedy of the appropriate parties is to move the Tribunal in O.P.(FC) No.404/17 terms of the statutory provisions. The learned counsel for the respondent-bank submits that even the original petition is not maintainable. We are not expressing our view in respect of the said contention.

4.The only question involved is whether an interim injunction can be granted or not. In so far as there is clear restriction under Section 34 of the SARFAESI Act that no civil court can entertain any proceeding under the Act and no injunction can be granted. The Family Court was justified in rejecting application for interim injunction. Section 34 of the SARFAESI Act reads as follows:-

34. Civil Court not to have jurisdiction: No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debts Recovery Tribunal or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of

1993).

O.P.(FC) No.404/17 In the light of the above statutory provision, we do not find any error being committed by the Family Court in dismissing the interim application. This original petition is without any merits and is dismissed.

A.M.Shaffique, Judge