TaxTMI 
TaxTMI 
2020 (1) TMI 1333
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....ead with section 151 of the Code of Civil Procedure, 1908, and the contention of respondents Nos. 7 and 8 in the interlocutory applications were that the fourth defendant M/s. Chithrubi Agro P. Ltd., comprises of two directors, who are Arunkumar and his wife Archana. The said company availed loan facility from Karnataka Bank Ltd., R. S. Puram Branch, Coimbatore. The said company has executed loan documents in favour of the bank. The said credit facilities were guaranteed by the guarantors, i. e., A. Mohan, M. Umadevi, A. Archana and Arunkumar. The guarantors have executed the guarantee agreement in favour of the Karnataka Bank Ltd. 3. It was contended that the suit schedule property was mortgaged and on account of the non-payment of loan a....
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....ess bar as contemplated under section 34 of the SARFAESI Act, allowed the interlocutory application. 6. This court is of an opinion that section 34 of the SARFAESI Act enumerates "No civil court shall have jurisdiction to entertain any suit or proceedings 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)". 7. Admittedly, the suit schedule property is the subject-matter of the SARFAESI Act, and the ba....
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.... application along with such fee, as may be prescribed, to the Debts Recovery Tribunal having jurisdiction in the matter within forty-five days from the date on which such measure had been taken : Provided that different fees may be prescribed for making the application by the borrower and the person other than the borrower. Explanation.-For the removal of doubts, it is hereby declared that the communication of the reasons to the borrower by the secured creditor for not having accepted his representation or objection or the likely action of the secured creditor at the stage of communication of reasons to the borrower shall not entitle the person (including borrower) to make an application to the Debts Recovery Tribunal under this sub-se....
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.... in force, the secured creditor shall be entitled to take recourse to one or more of the measures specified under sub-section (4) of section 13 to recover his secured debt. (5) Any application made under sub-section (1) shall be dealt with by the Debts Recovery Tribunal as expeditiously as possible and disposed of within sixty days from the date of such application : Provided that the Debts Recovery Tribunal may, from time to time, extend the said period for reasons to be recorded in writing, so, however, that the total period of pendency of the application with the Debts Recovery Tribunal, shall not exceed four months from the date of making of such application made under sub-section (1). (6) If the application is not disposed of by ....
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....tion 34 came up for consideration before this court in Mardia Chemicals Ltd. v. Union of India [2004] 120 Comp Cas 373, 404 (SC) ; [2004] 4 SCC 311 and this court held as follows (SCC page 349, paragraph 50) : 'It has also been submitted that an appeal is entertainable before the Debts Recovery Tribunal only after such measures as provided in sub-section (4) of section 13 are taken and section 34 bars to entertain any proceeding in respect of a matter which the Debts Recovery Tribunal or the Appellate Tribunal is empowered to determine. Thus before any action or measure is taken under sub-section (4) of section 13, it is submitted by Mr. Salve, one of counsel for the respondents that there would be no bar to approach the civil court. ....