KRISHNA KEDARNATH Vs. SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY

JUDGEMENT

(1.) THESE two appeals are filed against the orders dated 10-1-2005 passed by the Trial Court on LA. No. II filed by the UCO Bank under order 7, Rule 11 of the CPC rejecting the plaints holding that the suits are barred under clause (d ). The rejection of plaints amounts to decrees and therefore appeals are filed.

(2.) THE facts and question of law involved in both the appeals are common and hence they are heard together and disposed of by this common judgment.

(3.) THE brief facts leading to these appeals are that, UCO Bank has given loan by mortgaging some properties. Since default was committed by the borrowers in the matter of repayment, the Bank approached the debt Recovery Tribunal and steps had been taken to sell the mortgaged properties in public auction. At that juncture, the plaintiffs filed the suits for partition of the joint family properties, which also includes the properties mortgaged to the Bank, and obtained status quo order. In those circumstances, the Bank filed I. A. No. II under Order 7, Rule 11 (d)of the CPC requesting to reject the plaints on the ground that suits are barred under Section 34 of the Securitisation and Reconstruction of financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the Act')- The Trial Court allowed the applications and consequently rejected the plaints. Aggrieved by the same these two appeals are filed.