CHAPTER VI MISCELLANEOUS

Section 34: Civil court not to have jurisdiction

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debts Recovery Tribunal or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993).

Leading cases

Mardia Chemicals Ltd. v. Union of India (2004)The Court upheld the SARFAESI Act, 2002, subject to safeguards it read in, but struck down Section 17(2), which required a borrower to deposit 75% of the claimed amount before approaching the Debt Recovery Tribunal, as violating Article 14.

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