Civil Courts Lack Jurisdiction to Grant Injunctions on Matters in Which DRT is Empowered Under SARFAESI Act | HC

Case Details: Nishant Guleria v. Punjab National Bank - [2024] 158 taxmann.com 260 (Himachal Pradesh)

Judiciary and Counsel Details

• • Sushil Kukreja, J.
  • M.A. Safee, Adv. for the Appellant.
  • Arvind Sharma, Adv. for the Respondent.

Facts of the Case

In the instant case, the Appellant filed a plaint for declaration and permanent prohibitory injunction against action under the SAEFAESI Act taken by the bank. Later, the Trial Court by impugned order rejected the plaint of the appellant.

Feeling aggrieved and dissatisfied, the appellant approached the District Judge, by filing an appeal under Section 96 of CPC read with Section 21 of the Himachal Pradesh Courts Act, 1976, but the same was also dismissed, hence instant appeal was filed.

Since, the appellant was aggrieved by action of the bank taken under section 13(4)(a), the High Court observed that the appellant had a right to approach the Debt Recovery Tribunal under section 17 for redressal of any of his grievances. Thus, the Courts below have rightly rejected the plaint and therefore, the instant appeal was to be dismissed.

High Court Held

Further, the High Court held that no civil court shall have any jurisdiction to entertain any suit or proceeding in respect of any matter, which Debt Recovery Tribunal is empowered by or under SARFAESI 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 SARFAESI Act.