AFSARKHAN Vs. CENTRAL BANK OF INDIA,KANPURNAGAR

JUDGEMENT

(1.) This is a petition for quashing of the notice annexure-2 to the writ petition issued by the District Legal Services Authority to the petitioners stating that the Central Bank of India has initiated a drive to settle all outstanding Bank dues on lump sum basis by negotiations before moving to the court for its recovery and therefore you are called upon to enter appearance for settlement of the dues of Rs. 6,02,993/-. The submission of the learned counsel for the petitioners is that the aforesaid notice is without jurisdiction, as the jurisdiction of civil court is barred by Section 34 of the Secularization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (herein after referred to as the 'Act').

(2.) Section 34 of the above Act provides that no civil court shall have jurisdiction to entertain any suit or proceedings in respect of any matter which can be determined by a Debts Recovery Tribunal or the Appellate Tribunal. It clearly means that the jurisdiction of the civil court stands excluded in respect of matters which are cognizable by Debts Recovery Tribunal or the Appellate Tribunal.

(3.) Section 17 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 authorizes the Debts Recovery Tribunal to decide applications of the Bank and financial institutions for recovery of debts due to such banks and financial institutions. However, Section 1 sub-section (4) of the said Act clearly lays down that the aforesaid Act would not be applicable where amount of debts due to any bank or financial institutions is less than Rs. 10,000,00/-. Thus, the recovery of any amount by the bank or financial institution of a sum of Rs. 10,000,00/- and less would not be covered by the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and would not be cognizable by Debt Recovery Tribunal. The Debts Recovery Tribunal covers matters relating to recovery of loan/dues of Rs. 10,000,00/- and above.