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STATE BANK OF PATIALA vs. MUKESH JAIN & ANR.

SCR Citation: [2016] 8 S.C.R. 427
Year/Volume: 2016/ Volume 8
Date of Judgment: 08 November 2016
Petitioner: STATE BANK OF PATIALA
Disposal Nature: Appeal Allowed
Neutral Citation: 2016 INSC 1007
Judgment Delivered by: Hon'ble Mr. Justice Anil R. Dave
Respondent: MUKESH JAIN & ANR.
Case Type: CIVIL APPEAL /210/2007
Order/Judgment: Judgment
1. Headnote

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - ss. 13(4), 17 and 34 - Suit against proceedings initiated uls. 13(4) - lnvolving debt less C than Rs. 10 lakhs - Whether the suit is not maintainable in view of bar u!s. 34 or is it maintainable in view of s. 1 (4) of DRT Act which debars the jurisdiction of the Tribunal in respect of debts below Rs. JO lakhs - Held: The jurisdiction of civil court is barred in respect of action taken under the SARFAESl Act and the remedy available is before the Tribunal under DRT Act - As per s. I (4) of DRT Act, D provisions of DRT Act would not apply where the amount of debt is less than Rs. JO /akhs - But the aggrieved debtor cannot be left without any remedy - Therefore the provision uls. 1 (4) of DRT Act can be interpreted in such a manner which would not adversely affect legal remedy to a debtor - Bar uls. 1( 4) can be interpreted as E limited to the original jurisdiction of the Tribunal - Tribunal will have the jurisdiction to entertain the case in re~pect of proceedings under. the Act (where the amount involved is less than Rs. JO lakhs) in exercise of its appellate jurisdiction u/s. 17 - Recovery of Debts Due to Banks and Financial institutions Act, 1993 - s. 1 (4).

2. Case referred
3. Act
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4. Keyword
  • Securitisation and Reconstruction of Financial Assets and Enforcement of
5. Equivalent citation
    Citation(s) 2016 AIR 5140 = 2017 (1) SCC 53 = 2017 (1) Suppl. SCC 53 = 2016 (11) JT 4 = 2016 (11) Suppl. JT 4 = 2016 (10) SCALE 585