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Issues: Whether the civil suit for partition was barred by section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 when the suit schedule property was already the subject of proceedings before the Debts Recovery Tribunal.
Analysis: Section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 expressly bars civil court jurisdiction in respect of matters which the Debts Recovery Tribunal or the Appellate Tribunal is empowered to determine, and also prohibits injunctions in respect of actions taken or to be taken under the Act. Since the suit schedule property was admittedly subjected to the SARFAESI proceedings and the bank had already approached the Debts Recovery Tribunal, the dispute fell within the statutory bar. In such circumstances, the civil court could not entertain the partition suit, and the order rejecting the plaint was consistent with the statutory scheme and section 9 of the Code of Civil Procedure, 1908.
Conclusion: The suit was not maintainable before the civil court and the bar under section 34 operated against the appellants.
Final Conclusion: The decree under challenge was affirmed and the appeal was dismissed because the civil court lacked jurisdiction to entertain the partition suit in view of the pending SARFAESI proceedings.
Ratio Decidendi: Where a dispute concerning property is one which the Debts Recovery Tribunal is empowered to determine under the SARFAESI regime, the civil court's jurisdiction is barred under section 34 and a parallel civil suit is not maintainable.
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