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2015 (9) TMI 811 - HC - Indian LawsReview petition - Jurisdiction - Validity of action under SARFAESI Act, 2002 - in respect of the secured asset being the immovable property mortgaged by the opposite party no. 1/plaintiff to secure the repayment of loan obtained from the defendant no. 1 bank. - By the impugned order the learned Court below held that since the claim of the defendant no. 1 bank against the opposite party no. 1/plaintiff is ₹ 6,10,111/- which is less than the ₹ 10 lakhs, the suit is not barred under the Act of 2002 and the City Civil Court has the pecuniary jurisdiction to try the suit. Held that:- Section 31(h) of the Act of 2002 provides that the provisions of the Act of 2002 shall apply to any security interest for securing repayment of any financial asset exceeding one lakh rupees. However, Section 17 of the 2002 Act being a provision of a subsequent special statute confers the appellate jurisdiction on the Debts Recovery Tribunal to decide an application of any person aggrieved by any measure adopted by the secured creditor under sub-section (4) of Section 13 of the Act of 2002. Sub-section (4) of Section 1 the RDB Act relates to the original jurisdiction of the Debts Recovery Tribunal to entertain an application of the banks or financial institutions for recovery of their dues from the borrowers under the said Act and by no means the said provisions can be construed to have any bearing on the jurisdiction conferred by the Act of 2002 to entertain an appeal under Section 17 of the said Act against any decision of the secured creditor under sub-section (4) of Section 13 of the Act of 2002. Section 35 of 2002 Act provides that the provisions of the said Act shall have overriding effect on any provision of any Act, which is inconsistent with the provisions of the said Act. The suit, filed by the opposite party no. 1 is not maintainable and the impugned decision of the learned court below rejecting the application under Order 7 Rule 11(d) of the Code cannot be sustained. - Decided in favor of appellant.
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