The bar under Section 34 of SARFAESI Act, 2002 is absolute and civil jurisdiction is ousted to entertain any suit or proceedings in respect of any matter, which the DRT or appellate tribunal is empowered under the SARFAESI Act – M/s. Kotak Mahindra Bank Ltd. Vs. T. K. Karthikeyan – Madras High Court
Hon’ble High Court held that:
(i) There is a small distinction between Section 18 of Recovery of Debts and Bankruptcy Act, 1993 and the scope of 34 of SARFAESI Act, 2002
(ii) The scope of Section 34 is not one and the similar in its application. While Section 34 of SARFAESI Act contemplates ousting of civil jurisdiction to entertain any suit or proceedings in respect of any matter which DRT or the Appellate Tribunal is empowered to determine under the SARFAESI Act, whereas, Section 18 of Recovery of Debt Due to bank and Financial Institution Act contemplates the bar of jurisdiction only in relation to matters specified under Section 17 of the Act therein.
(iii) The bar under Section 34 is absolute and civil jurisdiction is ousted to entertain any suit or proceedings in respect of any matter, which the DRT or appellate tribunal is empowered under the SARFAESI Act.
