STATE BANK OF INDIA THANESAR Vs. SANTOSH

JUDGEMENT

(1.) This order shall dispose of CR No. 7054 of 2009 filed by the petitioner-Bank against the order passed by learned trial Court on 12.10.2009 whereby an application under Order 7 Rule 11, Code of Civil Procedure for rejection of the plaint on the ground that Civil Court has no jurisdiction to entertain the suit in view of Section 34 of the Securitization and Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act') has been dismissed and CR No. 1327 of 2010 filed by the plaintiff against the order passed by the Courts below dismissing the application for grant of ad-interim injunction.

(2.) Learned counsel for the petitioner has vehemently argued that the petitioner-Bank has invoked the provisions of the Act for realization of the assets secured with it and therefore in terms of Section 34 of the Act, the jurisdiction of the Civil Court is barred. Reliance has been placed upon the Supreme Court judgment reported as Mardia Chemicals Ltd and others v. Union of India and others, 2004 4 SCC 311.

(3.) On the other hand, learned counsel for plaintiff-respondent argued that certain exceptions have been laid down in the aforesaid judgment in respect of the maintainability of the suit before the civil Court i.e. where the actions of the secured creditors are alleged to be fraudulent or where there is any breach of contract. Therefore, the suit of the plaintiff is maintainable before the Civil Court.