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Showing contexts for: drt act in Sh. Amit Pahwa vs State Bank Of India on 30 July, 2016Matching Fragments
13 An analysis of the provisions of the DRT Act shows that pri mary object of that Act was to facilitate creation of special machinery for speedy recovery of the dues of Banks and financial institutions. This is the reason why the DRT Act not only provides for establish ment of the Tribunals and the Appellate Tribunals with the jurisdic tion, powers and authority to make summary adjudication of applica tions made by Banks or financial institutions and specifies the modes of recovery of the amount determined by the Tribunal or the Appel late Tribunal but also bars the jurisdiction of all courts except the Supreme Court and the High Courts in relation to the matters speci fied in section 17. The Tribunals and the Appellate Tribunals have also been freed from the following procedure contained in the Code of Civil Procedure. So in other words, the DRT Act has not only brought into existence special procedural mechanism for speedy recovery of the dues of Banks and financial institutions, but also made provision for ensuring that defaulting borrowers are not able to invoke the ju risdiction of Civil Courts for frustrating the proceedings initiated by the Banks and other financial institutions.
16 Section 17 speaks of the remedies available to any person in cluding borrower who may have grievance against the action taken by the secured creditor under Sub section (4) of section 13. Such an aggrieved person can make an application to the Tribunal within 45 days from the date on which action is taken under that sub section. Section 18 provides for an appeal to the Appellate Tribunal. Section 34 lays down that no Civil Court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Tribunal or Appellate Tribunal is empowered to determine. It further lays down that no injunction shall be granted by any Court or other authority in respect of any action taken or to be taken under the SRFAESI Act or the DRT Act. Section 35 of the SRFAESI Act is substantially simi lar to section 34(1) of the DRT Act. It declares that the provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.
18 After understanding the background, object & scope of "Recovery of Debts Due to Banks and Financial Institutions Act, 1993 ( 'DRT Act') as well as of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( 'SRFAESI Act'). Coming now to present case, counsel for Plaintiff, in light facts of suit as discussed above, submitted with great amount positivity, that jurisdiction of Civil Court is not out rightly ousted by provisions of Section 17 Of DRT Act, he submits that for adjudication of proprietary rights in a property, can be adjudicated upon by civil Court, while refereing to section 17 it is submitted that this provision confers jurisdiction on the DRT to entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions. It is submitted that this provision does not cover the right of a person to approach civil court for his civil rights in respect of property of which he bona fide purchaser, he submitted that even such facts may have even come in defence in proceedings before recovery officer but those proceedings before recovery officer by itself, do not take away jurisdiction of civil court to adjudicate on these issues. Ld. Counsel has relied upon judgment in Nahar Industrial Enterprises Ltd. v. Hong Kong & Shanghai Banking Corporation, (2009) 8 SCC 646, judgment of High Court of Mumbai, Nagpur Branch in "Authorized officer Vs. Shri Sagar and ors. " decided on 11.02.2011.
19 On other hand Ld. Counsel for defendant submitted that jurisdiction of Civil court is expressly barred, specifically when the object of DRT Act is to ensure speedy adjudication & enforcements of recovery claims of banks and financial institutes against creditors, more specifically in present case when the objections of plaintiff here in has already been dismissed by recovery officer and plaintiff is also filing appeal against that order of recovery officer before |DRT and simultaneously pursuing this suit. It is submitted that the spirit of law does not permit the plaintiff to prosecute his claim in two parallel judicial proceedings, he submits that provisions of section 17 r/w 18 of DRT Act clearly contemplates consideration of all the objections which can be raised even including claim regarding title , by recovery officer or other forums under the DRT Act and therefore, civil court has been expressedly barred to entertain such suits in respect of secured / mortgaged properties.