STATE BANK OF INDIA Vs. JIGISHABEN B SANGHAVI

JUDGEMENT

(1.) Admit. With the consent of all the learned Counsel for the parties, the appeal has been taken up for hearing and final disposal.

(2.) The Learned Single Judge dismissed a Chamber Summons, seeking the rejection of a plaint under Order 7, Rule 11(d) of the Code of Civil Procedure, 1908. The State Bank of India, the First Defendant to the suit, is in appeal. The bar to the maintainability of the suit, according to the Appellant, is section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(3.) In March 1996, the Appellant sanctioned a financial facility of Rs.70 crores to Crosslink Shipbreakers (P) Ltd. The Second, Third and Fourth Defendants executed letters of guarantee. The Second and Third Defendants are spouses, and the Second Defendant is the Karta of an HUF. The Fourth Defendant is the son of the Second and Third Defendants. The First Plaintiff is the wife of the Fourth Defendant, while the Second and Third Plaintiffs are their children. The Fourth Plaintiff is the daughter of the Second and Third Defendants. The case of the Appellant is that the Second, Third and Fourth Defendants executed a memorandum of deposit of title deeds by which a residential flat - Flat 1402, at Benhur, Narayan Dabholkar Road, Malabar Hill, Mumbai was mortgaged in its favour. The Appellant, on a default in the payment of its dues, instituted an application before the Debts Recovery Tribunal, Ahmedabad for the recovery of Rs.9.56 crores against the Second, Third and Fourth Defendants. The application was allowed by the Tribunal on 17 October, 2003. In the recovery proceedings, the flat was attached. A sale proclamation was issued.