BANK OF MAHARASHTRA Vs. RADHIKA SUSHEEL NAIR

JUDGEMENT

(1.) By this writ petition, the petitioner has challenged order dtd. 05/04/2021, passed by the Court of 17th Jt. Civil Judge, Senior Division, Nagpur, whereby an application for vacating status quo (Exh.16) has been rejected.

(2.) This Court while issuing notice for final disposal granted ad-interim stay in favour of the petitioner.

(3.) The respondent No.1 (original plaintiff) has filed a suit for declaration and injunction against the petitioner and other defendants, claiming that a declaration is warranted in the facts and circumstances of the present case for lifting the corporate veil of the original defendant No.3 - company to protect the rights and interest of plaintiff i.e. share-holder of the said company. It is claimed that the defendants have acted in collusion to defeat the interest of respondent No.1 as a share-holder of the company and that the defendants have indulged in acts of fraud and illegalities. It is specifically pleaded that in the light of the grievance being raised by respondent No.1 in the aforesaid suit and the nature of prayers made therein, the suit is not barred by the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act). In the said suit, the Court below granted an order of status quo in favour of the respondent No.1, during the pendency of the application for grant of temporary injunction (Exh.5). The petitioner filed an application under Order 7 Rule 11 of the Code of Civil Procedure (Exh.14), praying for rejection of the plaint on the ground that the suit itself is barred by the provisions of the said Act and that the original defendant No.3 - Company has exhausted the remedies under the SARFAESI Act upto the Hon'ble Supreme Court.