MANOJ KUMAR JAIN Vs. CORPORATION BANK

JUDGEMENT

(1.) THE appeal has been preferred by the plaintiffs aggrieved by order passed by District Judge, Jabalpur in C. S. No. 8-A/06 rejecting the plaint under Order 7, Rule 11 of Civil Procedure Code on the ground that civil suit is barred under section 34 of Securitisation and reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as Act of 2002 ).

(2.) THE plaintiffs are the purchaser from borrower Jitendra Kumar Jasnani, they have purchased the house by registered sale deed dated 8-12-2003 for a sum of Rs. 8,27,000/ -. Before filing of the suit the appellants came to know that the first floor portion purchased by them was under mortgage with the Corporation bank. Paper publication revealed that the Bank had taken the action under the act of 2002, therefore, the plaintiffs filed the suit for declaration that they are the absolute owners in possession of house numbers 1267 to 1270 comprised of first floor having an area of 1287 sq. ft. of land situated at Gol Bazar, Wright Town, jabalpur. The Bank filed an application under Order 7 Rule 11 of Civil Procedure code contending that suit is not maintainable because the Act of 2002 bars the jurisdiction of the Civil Court to entertain any suit or proceeding in respect of any matter or proceeding under the Act of 2002, steps have been taken by the Bank under the aforesaid Act. Remedy of the plaintiff lies before Debt Recovery tribunal under section 17 of the Act of 2002.

(3.) THE learned District Judge, Jabalpur has held that in view of provisions of the Act of 2002 the Civil Suit is not maintainable. Objection raised by the bank has been upheld. Aggrieved by the dismissal of the suit on the ground of maintainability, the plaintiffs have preferred the instant appeal in this Court.