2018 (5) TMI 2183

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....Roy, AOR Mr. P. Srinivasan, Adv. Mr. A.R. Aditya, Adv. ORDER C.A. Nos. 7214-7216 of 2012 1. The Appellant herein seeks to challenge the order of the High Court of Madras by which the suit filed by the second Respondent-Nandini has been held to be maintainable in law, notwithstanding the provisions of Section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act"). Accordingly, the injunction granted by the learned trial Court was held to be justified and the sale transaction that had taken place in favour of the Appellant (during the period when the injunction order was stayed by the High Court) has been invalidated. 2. Though the ....

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.... 24. Statutory interest is being created in favour of the secured creditor on the secured assets and when the secured creditor proposes to proceed against the secured assets, Sub-section (4) of Section 13 envisages various measures to secure the borrower's debt. One of the measures provided by the statute is to take possession of secured assets of the borrowers, including the right to transfer by way of lease, assignment or realising the secured assets. Any person aggrieved by any of the "measures" referred to in Sub-section (4) of Section 13 has got a statutory right of appeal to the DRT Under Section 17. The opening portion of Section 34 clearly states that no civil Court shall have the jurisdiction to entertain any suit or proc....

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....provisions of Section 17 of the SARFAESI Act and thereafter Under Section 18 of the SARFAESI Act the Respondent No. 2 has an adequate and efficacious remedy we are inclined to permit the Respondent No. 2 to have recourse to the said remedies and agitate before the learned Debts Recovery Tribunal all issues that may be open in law. All objections as may be available to the Appellant may also be raised before the learned Debts Recovery Tribunal. The learned Debts Recovery Tribunal and thereafter the learned Debts Recovery Appellate Tribunal, if required to be approached by the Respondent No. 2, will decide the matter with utmost expedition. Untill the aforesaid proceedings are complete while confirming the auction sale in favour of the Appell....