As per Section 34 of SARFAESI Act, 2002 there is a clear bar to the filing of a civil suit in respect of any action which the DRT or the Appellate Tribunal is empowered under the SARFAESI Act to determine as also no injunction shall be granted by any court or other authority in respect of any action being taken under the SARFAESI Act or the RDB Act 1993 – Kotak Mahindra Bank Ltd. Vs. The State of Maharashtra – Bombay High Court

Hon’ble High Court of Bombay held that:
(i) These provisions are a code by itself when it comes to an action being taken under the SARFAESI Act is concerned. As per Section 34 there is a clear bar to the filing of a civil suit in respect of any action which the DRT or the Appellate Tribunal is empowered under the SARFAESI Act to determine as also no injunction shall be granted by any court or other authority in respect of any action being taken interalia under the SARFAESI Act or the RDB Act 1993.
(ii) The Respondents in absence of any stay, much less an order which could be passed in the proceedings which the third party could initiate only under Section 17 of the SARFAESI Act before the DRT. We are of the clear view that the Respondents were totally illegal in their approach in addressing the impugned communication dated 17 November 2022 as also stalling the recovery proceedings as initiated by the Petitioner.

As per Section 34 of SARFAESI Act, 2002 there is a clear bar to the filing of a civil suit in respect of any action which the DRT or the Appellate Tribunal is empowered under the SARFAESI Act to determine as also no injunction shall be granted by any court or other authority in respect of any action being taken under the SARFAESI Act or the RDB Act 1993 – Kotak Mahindra Bank Ltd. Vs. The State of Maharashtra – Bombay High Court Read Post »