A.S.Ravi vs N.Ashok
2021 Latest Caselaw 5902 Mad

Citation : 2021 Latest Caselaw 5902 Mad
Judgement Date : 5 March, 2021

Madras High Court

A.S.Ravi vs N.Ashok on 5 March, 2021

                                                                            C.R.P.(P.D).No.456 of 2017
                                                                            and C.M.P.No.2160 of 2017

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 05.03.2021

                                                     CORAM

                                   THE HON'BLE Mr. JUSTICE G.K.ILANTHIRAIYAN

                                             C.R.P.(PD) No.456 of 2017
                                             and C.M.P.No.2160 of 2017

                     A.S.Ravi                                        ... Petitioner

                                                        Vs.


                     1.N.Ashok

                     2.The Authorised Officer,
                     M/s.State Bank of India (SAM Branch),
                     Raja Plaza,
                     First Floor No.1112, Avinashi Road,
                     Coimbatore – 641 037.

                     3.The Deputy General Manager,
                     M/s.State Bank of India (SAM Branch),
                     Raja Plaza,
                     First Floor No.1112, Avinashi Road,
                     Coimbatore – 641 037.

                     4.M/s.State Bank of India (SAM Branch),
                     Raja Plaza,
                     First Floor No.1112, Avinashi Road,
                     Coimbatore – 641 037.                           ... Respondents


                     1/6
https://www.mhc.tn.gov.in/judis/
                                                                                 C.R.P.(P.D).No.456 of 2017
                                                                                 and C.M.P.No.2160 of 2017

                     Prayer :- Civil Revision Petition is filed under Article 227 of Constitution
                     of India, to strike off the plaint in O.S.No.1942 of 2016 on the file of 1st
                     Additional District Munsif Court, Coimbatore.
                                   For Petitioner      : Mr.Mukunth
                                                         for M/s.Sarvabhauman Associates
                                   For R1              : Mr.N.Manokaran
                                   For R2 to R4        : Notice served

                                                           ORDER

The Civil Revision Petition has been filed to strike off the Plaint

in O.S.No.1942 of 2016 on the file of the I Additional District Munsif

Court, Coimbatore.

2. The petitioner is the fourth defendant in the suit filed by the

first respondent herein for declaration declaring that the sale deed executed

by the first defendant in favour of the petitioner herein dated 05.04.2016 as

null and void and also for injunction in respect of the suit property.

3. The learned counsel for the petitioner would submit that the

suit itself is barred under Section 34 of the SARFAESI Act, since the

petitioner is an auction purchaser under the SARFAESI Act. The

https://www.mhc.tn.gov.in/judis/ C.R.P.(P.D).No.456 of 2017 and C.M.P.No.2160 of 2017

respondent is the guarantor and deposited the title deed insofar as the suit

property in favour of the first defendant on the borrowal of the loan. The

borrower defaulted in payment of the loan installments and as such, the

property was brought to sale under SARFAESI Act. Accordingly, the

petitioner purchased the suit property and the sale certificate was also issued

on 04.03.2016. When the challenge to the sale deed under Section 17 of the

SARFAESI Act before the Tribunal is pending, the first respondent filed the

present suit before the Civil Court on the ground that the sale certificate was

executed fraudulently.

4. The learned counsel for the respondents would submit that

already a similar and identical issue was dealt with a Division Bench of the

Hon'ble Supreme Court with regard to jurisdiction of the trial court to try a

suit filed by a borrower against a bank or financial institution for recovery

of debt under SARFAESI Act. Now the matter has been referred before the

Larger Bench and decided. However, the learned counsel relied upon a

Judgment in the case in Authorised Officer, State Bank of India Vs. Allwyn

Alloys Private Limited and others reported in 2018 (8) SCC 120, wherein it

is observed as follows:

https://www.mhc.tn.gov.in/judis/ C.R.P.(P.D).No.456 of 2017 and C.M.P.No.2160 of 2017

“After having considered the rival submissions of the parties, we have no hesitation in acceding to the argument urged on behalf of the Bank that the mandate of Section 13 and, in particulars, Section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the 2002 Act”), clearly bars filing of a civil suit. For, no civil court can exercise jurisdiction to entertain any suit or proceeding in respect of any matter which a DRT or DRAT is empowered by or under this Act to determine and no injunction can be granted by any court or authority in respect of any action taken or to be taken in pursuance of any power conferred by or under the Act”.

Following the same, this Court is of the view that no Civil Court

can exercise jurisdiction to entertain any suit or proceedings in respect of

any matter which a DRT or DRAT is empowered by or under this Act to

determine and Section 34 of the SARFEASI Act clearly bars filing of a civil

suit. Accordingly, the judgment referred to above squarely applies to the

present case that the Civil Court has no jurisdiction to try the suit.

https://www.mhc.tn.gov.in/judis/ C.R.P.(P.D).No.456 of 2017 and C.M.P.No.2160 of 2017

5. In view of the above discussion, the Plaint in O.S.No.1942 of

2016 on the file of the I Additional District Munsif Court, Coimbatore is

hereby struck off and the Civil Revision Petition is allowed. No costs.

Consequently, connected Miscellaneous Petition is closed.

05.03.2021