ACCURATE HOUSING PRIVATE LIMITED Vs. GURDEEP SINGH

JUDGEMENT

(1.) THIS petition filed under Article 227 of the Constitution challenges the order dated 4.2.2014 whereby the application of the petitioner/defendant No.7 preferred under Section 151 CPC is rejected by the Court below.

(2.) THE respondent No.1 preferred a Securitization Application No. 212/2012 before the Debts Recovery Tribunal, Jabalpur (Tribunal). In the said case, present petitioner was respondent No.2. The Tribunal delivered its judgment on 19.12.2012 (Annexure P -4). In the said judgment the Tribunal opined that the question of fraud can be adjudicated and determined by a competent Civil Court and, therefore, the appeal is not maintainable. It was dismissed with cost. On the strength of this order, the respondents No. 1 and 2 filed the instant suit before the Court below which was registered as Case No. 13 -A -2014. Admittedly, respondent No.1 preferred an application before the Tribunal seeking recalling and setting aside of the said order dated 19.12.2012. This application is registered as MA. No. 5/13 before the Tribunal. Learned counsel for the parties admitted that this review application is still pending before the Tribunal.

(3.) SHRI Sanjeev Jain, learned counsel for the petitioner submits that a plain reading of Section 34 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) makes it clear that the civil suit is barred. The Civil Court assumed jurisdiction and respondents/plaintiffs could file the instant civil suit only on the strength of the order passed in SA No. 212/12. The singular point raised is that the present petitioner preferred application dated 20.8.2014 (Annexure P -6) under Section 151 CPC seeking stay of the proceedings till decision of MA No. 5/13. The Court below rejected the said application by impugned order dated 4.2.2014 which is bad in law.