2015 (3) TMI 239

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....ying, inter alia, for a declaration that the classification of the account of the plaintiff borrower in the cash credit account maintained with the bank as non-performing asset is bad and all measures taken on the basis of such classification is invalid and unforeseeable. The plaintiff is a constituent of the defendant bank. The plaintiff availed cash credit facility to the tune of Rs. 4.50 crores in terms of a letter of sanction dated 25th June, 2007. The account was classified as non-performing asset on 8th July, 2013. According to the defendant such classification was made following the Reserve Bank guidelines. The defendant had issued a notice under Section 13(2) of the SARFAESI Act followed by measures taken under Section 13(4)of the ....

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....and Ors. reported at 2014 (1) SCC 479 and the Standard Chartered Bank vs. Noble Kumar and Ors. reported at 2013 (9) SCC 620. In Standard Chartered Bank (supra), the Hon'ble Supreme Court in paragraph 37 referred to three modes of taking possession of the Secured Assets by the Secured Creditors which are as follows:- i) The first method would be where the secured creditor gives the requisite notice under rule 8(1) and where he does not meet with any resistance. In that case, the authorized officer will proceed to take steps as stipulated under rule 8(2) onwards to take possession and thereafter for sale of the secured assets to realize the amounts that are claimed by the secured creditor. ii) The second situation will arise where the secu....

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....of the Judgment the Court in terms held that in remedy under Section 17 of the Act was essentially like filing a suit in a Civil Court though it was called an Appeal. It is also relevant to note that in the ultimate conclusions in paragraph 80 of the judgment this Court held below:-                   "As already discussed earlier, on measures having been taken under sub-section (4) of Section 13 and before the date of sale/auction of the property it would be open for the borrower to file an appeal (petition) under Section 17 of the Act before the Debts Recovery Tribunal." The grievance of the respondent that it will be left with no remedy is, therefore, m....

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....espect of any action taken "or to be taken in pursuance of any power conferred under this Act". That is to say, the prohibition covers even matters which can be taken cognizance of by the Debts Recovery Tribunal though no measures in that direction has so far been taken under Sub-Section (4) of Section 13. It is further to be noted that the bar of jurisdiction is in respect of a proceeding which matter may be taken to the Tribunal. Therefore, any matter in respect of which an action may be taken even later on, the Civil Court shall have no jurisdiction to entertain any proceeding thereof. The bar of civil courts thus applies to all such matters which may be taken cognizance of by the Debts Recovery Tribunal, apart from those matters in whi....