The Punjab and Haryana High Court Single Judge Bench comprising Justice H.S. Madaan was hearing a Regular Second Appeal and held that Plaintiff's attempt to file a civil suit to defeat the process initiated under the SARFAESI Act, 2002 is not permissible, and if aggrieved, the plaintiff should approach the Debt Recovery Tribunal under Section 17 of the Act.
The Appellate Tribunal dismissed the Regular Second Appeal filed by the plaintiff, affirming the trial court's decision to reject the plaint and the appellate court's decision to dismiss the appeal.
The plaintiff had filed a suit seeking a declaration of ownership and injunction over a residential property, claiming it to be his ancestral property and challenging the notice issued by the financial institution for possession.
The defendant financial institution argued that the suit was barred under Sections 34 and 35 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, which confer jurisdiction to the Debt Recovery Tribunal and Appellate Tribunal, and the civil court had no jurisdiction in such matters.
The High Court found that the suit was clearly barred under the mentioned sections, and the plaintiff's attempt to circumvent them was deemed unfounded.
The High Court also noted that the cited judgments by the appellant's counsel were not applicable to the present case. Consequently, the appeal was dismissed, and no substantial question of law arose in the matter.
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