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2014 (3) TMI 73 - SC - Indian LawsJurisdiction of Debt Recovery Tribunal (DRT) or Civil Court to determine whether there has been any illegality in the “measures” taken by a secured creditor under sub-section (4) of Section 13 of the Securitisation Act - appellant herein was the auction purchaser - The appellant was not put in possession of the property in question even though the auction was confirmed. - Held that:- the civil court jurisdiction is completely barred, so far as the “measure” taken by a secured creditor under sub-section (4) of Section 13 of the Securitisation Act, against which an aggrieved person has a right of appeal before the DRT or the Appellate Tribunal. to determine as to whether there has been any illegality in the “measures” taken. The bank, in the instant case, has proceeded only against secured assets of the borrowers on which no rights of Respondent Nos.6 to 8 have been crystalised, before creating security interest in respect of the secured assets. In such circumstances, we are of the view that the High Court was in error in holding that only civil court has jurisdiction to examine as to whether the “measures” taken by the secured creditor under sub-section (4) of Section 13 of the Securitisation Act were legal or not. - Order of High Court set aside - Decided in favor of appellant.
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