- (1.) This application is at the instance of the defendant Bank for rejection and or dismissal of the plaint on the ground that the suit is barred under Section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act).
(2.) The plaintiff has instituted the suit on 18th December, 2013 praying, inter alia, for a declaration that the classification of the account of the plaintiff borrower in the cash credit account maintained with the bank as non-performing asset is bad and all measures taken on the basis of such classification is invalid and unforeseeable.
(3.) The plaintiff is a constituent of the defendant bank. The plaintiff availed cash credit facility to the tune of Rs.4.50 crores in terms of a letter of sanction dated 25th June, 2007. The account was classified as non-performing asset on 8th July, 2013. According to the defendant such classification was made following the Reserve Bank guidelines. The defendant had issued a notice under Section 13(2) of the SARFAESI Act followed by measures taken under Section 13(4) of the SARFAESI Act. The possession notice was issued on 3rd December, 2013. The plaintiff following measures taken by the Sate Bank of India has filed an appeal under Section 17 of the SARFAESI Act being S.A. No. 1447 of 2013 on 26th December, 2013. Admittedly, the suit was filed subsequent to the measures being taken by the defendant and also the appeal preferred by the plaintiff before the Debt Recovery Tribunal.;