A civil suit was filed by plaintiff third party smt Prabha jain against Sarfaesi proceedings initiated by central bank of india
central bank filed application under order 7 rule 11 of CPC claiming suit is barred under section 17 of the sarfacie act and appeal is the only remedy to DRT
Trial court rejected application under order 7 rule 11 and bank went to high court against rejection of application & high court accepted the appeal of central Bank and held that trial court has no jurisdiction to try the case and accepted appeal of bank
The matter went in Supreme Court by respondent / original plaintiff and Supreme Court observed the relief prayed in suit and documents pertaining to and concluded that suit is maintainable as the sale deed and mortgage deed was executed without making partition of share in property and prayer in suit was prayed of document of sale to be declared nullity and sec 17 of Sarfaesi act does not oust the jurisdiction of “ any person” The question of validity of sale deed can not be decided by DRT The only argument posed by bank that under sec 34 of Sarfaesi civil court has no jurisdiction to try the suit The jurisdiction to declare sale deed or a mortgage deed illegal is vested with civil court under sec 9 of cpc
DRT can never have the jurisdiction to decide such civil disputes of title between a third party & borrower
Number of appeals of Banks were also decided by common judgement where matter of adoption in title were involved and Supreme Court dismissed these appeals of bank and order of high court of Madhya Pradesh was set aside
This was in essence in reported case title central Bank of India & ors v/s Prabha jain & ors civil appeal number 1876 of 2016 judgement delivered on dt 09/01/2025
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