{"id":200299,"date":"2018-08-20T10:45:35","date_gmt":"2018-08-20T05:15:35","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=200299"},"modified":"2018-08-22T17:31:48","modified_gmt":"2018-08-22T12:01:48","slug":"civil-court-cannot-have-jurisdiction-in-matters-covered-under-sarfaesi-act-2002-just-because-fraud-is-alleged","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/08\/20\/civil-court-cannot-have-jurisdiction-in-matters-covered-under-sarfaesi-act-2002-just-because-fraud-is-alleged\/","title":{"rendered":"Civil Court cannot have jurisdiction in matters covered under SARFAESI Act, 2002 just because fraud is alleged"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Punjab and Haryana High Court: <\/strong>In this case, two revision petitions were disposed of together by a Single Judge Bench comprising of Anil Kshetarpal, J., where issues were identical.<\/p>\n<p style=\"text-align: justify;\">This revision petition was filed against an order where application for rejection of plaint was dismissed. The Plaintiffs were alleged with not signing the documents of guarantee. The plaintiff had approached the Civil Court in the matter related to SARFAESI Act, 2002 where according to Section 17 of the Act any person affected is entitled to file an application before the Debt Recovery Tribunal (DRT). In pursuance of Section 34 of the Act which bars Civil Court\u2019s jurisdiction in matters covered under SARFAESI Act, defendant i.e. Nationalized Bank pleaded that Civil Court had no jurisdiction. Trial Court referred the case of <strong><em>Mardia Chemicals Ltd. v. Union of India<\/em><\/strong>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/AqAO0sTr\">(2004) 4 SCC 311<\/a> where it was held that in cases of fraud, Civil Court does have jurisdiction.<\/p>\n<p style=\"text-align: justify;\">This Court observed that the pleadings of the plaintiff suggests that the word <em>fraud<\/em> had been deliberately used so as to oust the jurisdiction of Debt Recovery Tribunal and in a decision of Madras High Court <strong><em>V.Thulasi v. Indian Overseas Bank<\/em><\/strong><em>, <\/em><a href=\"http:\/\/www.scconline.com\/DocumentLink\/i53756HU\">2011 SCC OnLine Mad 670<strong>\u00a0<\/strong><\/a>it was held that where it is found that the word fraud has been deliberately used as a clever drafting in order to bring the suit before Civil Court such efforts will be repelled by the Court. High Court enabled the DRT by virtue of provisions of SARFAESI Act, 2002 to deal with the issue of whether the plaintiffs had stood guarantee to the loan received by the borrowers or not. Therefore, both the revision petitions were allowed and the matter will be taken up by the DRT. [State Bank of Patiala v. Satya Jyoti Rice Mills,<a href=\"http:\/\/www.scconline.com\/DocumentLink\/4L05T4Yu\"><b>2017 SCC OnLine P&amp;H 4657<\/b><\/a>, order dated 02-11-2017]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab and Haryana High Court: In this case, two revision petitions were disposed of together by a Single Judge Bench comprising of <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[10551,31500,2554,31305],"class_list":["post-200299","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-civil-court","tag-debt-recovery-tribunal-drt","tag-Jurisdiction","tag-sarfaesi-act-2002"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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Chandurkar, J. allowed a civil revision application filed by the tenant \u2014 Dena Bank, against the order of the trial court whereby its application under Order 7 Rule 11(d) CPC for rejection of the plaint filed by the landlord for\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":197587,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/06\/27\/section-17-of-sarfaesi-act-provides-remedy-before-drt-against-the-order-of-district-magistrate\/","url_meta":{"origin":200299,"position":1},"title":"Section 17 of SARFAESI Act provides remedy before DRT against the order of District Magistrate","author":"Bhumika Indulia","date":"June 27, 2018","format":false,"excerpt":"Madhya Pradesh High Court: In a matter arising under Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002, a Division Bench comprising of Hemant Gupta, CJ and Atul Sreedharan, J. allowed a writ appeal and set aside the Orders of the learned Single Judge as\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":306330,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/11\/03\/delhi-high-court-remedy-section-1310-sarfaesi-act-cannot-considered-remedy-independent-rdb-act-legal-news\/","url_meta":{"origin":200299,"position":2},"title":"Delhi High Court| Remedy under Section 13(10) of SARFAESI Act cannot be considered as a remedy independent of the RDB Act","author":"Arunima","date":"November 3, 2023","format":false,"excerpt":"The Court is unable to accept that the legislative intent is to provide parallel regimes for the recovery of debts. The provisions of Section 13(10) of the SARFAESI Act, thus, cannot be interpreted in the manner as contended on behalf of the petitioner.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/10\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":196227,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/22\/withdrawal-of-notice-under-s-13-4-of-sarfaesi-act-does-not-discharge-the-debt\/","url_meta":{"origin":200299,"position":3},"title":"Withdrawal of notice under Section 13 (4) of SARFAESI Act does not discharge the debt","author":"Saba","date":"May 22, 2018","format":false,"excerpt":"Madhya Pradesh High Court: A petition filed against the possession notice issued under Rule 8 of the Security Interest (Enforcement) Rules 2002 was dismissed by a Division Bench comprising of Hemant Gupta, CJ and Vijay Kumar Shukla, J. Argument of the petitioner was that earlier, the concerned Bank initiated proceedings\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":281208,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/01\/07\/borrower-50-percent-pre-deposit-debt-due-includes-interest-sarfaesi-act-section-18-supreme-court-legal-research-updates-news-law\/","url_meta":{"origin":200299,"position":4},"title":"Borrower to pre-deposit 50% of the \u201cdebt due\u201d including &#8216;interest&#8217; under Section 18 of SARFAESI Act: Supreme Court","author":"Prachi Bhardwaj","date":"January 7, 2023","format":false,"excerpt":"The Court was called upon to decide as to while calculating the amount to be deposited as predeposit under Section 18 of the SARFAESI Act, 50% of which amount the borrower is required to deposit as pre-deposit and whether while calculating the amount of \u201cdebt due\u201d, the amount deposited by\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/01\/Borrower-to-pre-deposit-50-of-the-debt-due-including-interest-under-Section-18-of-SARFAESI-Act.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":361237,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/09\/23\/remedy-for-secured-creditors-aggrieved-by-actions-under-section-134-of-the-sarfaesi-act-where-does-it-lie\/","url_meta":{"origin":200299,"position":5},"title":"Remedy for Secured Creditors Aggrieved by Actions under Section 13(4) of the SARFAESI Act: Where does it Lie?","author":"Editor","date":"September 23, 2025","format":false,"excerpt":"by Prashant Tripathi*","rel":"","context":"In &quot;Op Eds&quot;","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"Secured Creditors Remedy under SARFAESI Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/Secured-Creditors-Remedy-under-SARFAESI-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/Secured-Creditors-Remedy-under-SARFAESI-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/Secured-Creditors-Remedy-under-SARFAESI-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/09\/Secured-Creditors-Remedy-under-SARFAESI-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/200299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=200299"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/200299\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=200299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=200299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=200299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}