STATE BANK OF PATIALA Vs. MUKESH JAIN & ANR.
LAWS(SC)-2016-11-6
SUPREME COURT OF INDIA
Decided on November 08,2016

STATE BANK OF PATIALA Appellant
VERSUS
Mukesh Jain And Anr. Respondents

JUDGEMENT

ANIL R.DAVE,J. - (1.) Being aggrieved by the judgment dated 8th April, 2005 delivered in Civil Revision Petition No.242 of 2004 by the High Court of Delhi, this appeal has been filed by the appellant, whose application filed under Order VII Rule 11 of the Code of Civil Procedure, 1908 had been rejected by the trial Court and being aggrieved by the order of rejection dated 9 th February, 2004, the aforestated Civil Revision Petition was filed before the High Court, but the said Civil Revision Petition was also rejected by the impugned order and therefore, this appeal has been filed.
(2.) The facts giving rise to the present litigation, in a nutshell, are as under: The appellant is a nationalized bank which had lent Rs.8,00,000/- (Rupees eight lakh) to respondent no.1 by way of a term loan on certain conditions and so as to secure the said debt, respondent no.1 debtor had mortgaged his immovable property forming part of premises bearing no.C-8/298, Yamuna Vihar, Delhi. As respondent no.1 committed default in re-payment of the said loan, the appellant initiated proceedings under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the Act'). When notice under Section 13(2) of the Act had been issued and further proceedings were sought to be initiated by the appellant against respondent no.1, the said proceedings had been challenged by respondent no.1 by filing Civil Suit No.4 of 2003 in the Court of Civil Judge, Delhi.
(3.) In the said suit, the appellant filed an application under Order VII Rule 11 of the CPC contending that the Court had no jurisdiction to entertain the suit in view of the provisions of Section 34 read with Section 13(2) of the Act, which prohibits a Civil Court from dealing with the matters arising under the provisions of the Act. After considering the averments made in the application as well as the reply given by respondent no.1 and upon hearing the concerned counsel, the said application had been rejected by the trial Court by an order dated 9 th February, 2004.;


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