Jurisdiction of the Civil Court can also be invoked, where the action of the secured creditor is alleged to be fraudulent, No bar u/s 34 of SARFAESI Act, 2002 – Aavas Financiers Ltd. Vs. Smt. Bhagwanti Mahawar – Madhya Pradesh High Court
In this case, the suit has been instituted by plaintiff on specific plea as regards fraud and deceit having been practiced upon her by the defendant.
Hon’ble High Court held that the suit would hence be maintainable in view of the decision in the case of Mardia Chemicals Ltd. [2017] ibclaw.in 16 SC in which it has been held that to a very limited extent, jurisdiction of the Civil Court can also be invoked, where for example, the action of the secured creditor is alleged to be fraudulent.
The Hon’ble Court also held that in the present case, the plaintiff has not instituted the claim in respect of any measures taken or proposed to be taken by the defendant under Section 17 of Act, 2002 but has alleged fraud on its part resulting in threat to her title to the suit house. The judgment Jagdish Singh Vs. Heeralal and others (2017) ibclaw.in 38 SC relied upon by the counsel for the applicant hence does not help him in any manner.