Whether a suit seeking specific performance of contract is maintainable before the Civil Court or the suit itself is barred by Section 34 of the SARFAESI Act? | Debt Recovery Tribunal has no jurisdiction to enforce specific performance of contract? – S.S. Agro Bio-Tech Flour Mills (Pvt.) Ltd. and Ors. Vs. Arvind Singh and Ors. – Jharkhand High Court
Hon’ble Jharkhand High Court held that:
(i) DRT has no jurisdiction to enforce specific performance of contract.
(ii) The enforcement of security interest by the bank/secured creditor is subject to conditions of the account being declared non-performing asset and there is complete uncertainty as to whether the bank would at all invoke measures provided under section 13 of the SARFAESI Act for recovery of its debt.
(iii) The bar of the Civil Court under section 34 of SARFAESI Act applies only to such matters which can be adjudicated by Debt Recovery Tribunal including the action as and when taken for enforcement of security interest in terms of section 13(4) of the SARFAESI Act.