Jurisdiction of civil court u/s 34 of SARFAESI Act was in ...

Civil Courts' Jurisdiction Limited in SARFAESI Act Cases; High Court Dismisses Appeal Lacking Substantial Legal Question.

July 30, 2024

Case Laws     Indian Laws     HC

Jurisdiction of civil court u/s 34 of SARFAESI Act was in question. Suit for declaration and permanent prohibitory injunction was rejected by lower courts under Order VII, Rule 11 CPC. For second appeal u/s 100 CPC, existence of substantial question of law is sine qua non. Section 100 mandates precise statement of substantial question of law and High Court to formulate the same. Entertaining appeal without framing substantial question would be illegal. Substantial question must emerge from sustainable findings of fact and be necessary for just decision. No new point can be raised unless it goes to root of matter. Section 34 bars civil court's jurisdiction over matters within DRT's purview and prohibits injunction against actions under SARFAESI Act. Mere use of word "fraud" without particulars as per Order 6 Rule 4 CPC cannot confer jurisdiction. Lower courts rightly rejected plaint under Order 7 Rule 11 CPC. No substantial question of law involved. Appeal dismissed.

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