Sarfaesi act 2002
Vinesh K Chhaya
(Querist) 11 September 2013
This query is : Resolved
If the the property owner's suit continues in civil court for relief seeking to decide original debtor...The district magistrate ordered to take possession in 10 days...In such matter can section 17 of SARFAESI act 2002 applicable without withdrwal of any suit?
exactly want to say that with any suit/application/proceedings pending in any court including high court, Securetisation appeal allow?
Advocate M.Bhadra
(Expert) 11 September 2013
If bank have filed Money Suit in Civil Court by avoiding DRT and without serve notice u/sec.13(2) and 13(4) of SARFEASI Act one can not go to DRT u/sec 17(1) of the said Act. Under SARFEASI Act Civil Court have no jurisdiction.
You can file an appeal against the order of Civil Court in Higher Court i.e. District Court or High Court as the case may be.
Alternately you can approach to the DRT u/sec.17 of the SARFEASI Act against the order of District Magistrate, as because civil court can not direction to the D.M. for Police help to take the possession.
Sec.34 SARFEASI ACT;-- 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).
Sec.17 Right to appeal.- (1) Any person (including borrower), aggrieved by any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor or his authorised officer under this Chapter, may prefer an appeal to the Debts Recovery Tribunal having jurisdiction in the matter within forty-five days from the date on which such measure had been taken.
(2) Where an appeal is preferred by a borrower, such appeal shall not be entertained by the Debts Recovery Tribunal unless the borrower has deposited with the Debts Recovery Tribunal seventy-five per cent. of the amount claimed in the notice referred to in sub-section (2) of section 13:
Provided that the Debts Recovery Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this section.
(3) Save as otherwise provided in this Act, the Debts Recovery Tribunal shall, as far as may be, dispose of the appeal in accordance with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) and rules made thereunder.
