CENTRAL BANK OF INDIA & ANR. V. SMT. PRABHA JAIN & ORS. [2025] 2 S.C.R. 263 : 2025 INSC 95
The issue which arose in the present case was Whether the jurisdiction of a civil court to try a suit is completely barred by S-34 of the SARFAESI Act, 2002?
The SC held that the SARFAESI Act provides a mechanism only for speedy recovery of debt by banks/financial institutions, not for adjudicating the validity of documents/titles disputes and further clarified that S-34 bars civil court’s jurisdiction only in respect of those matters which the DRT/Appellate Tribunal is empowered to decide u/the SARFAESI Act or RDB Act, 1993. DRT’s jurisdiction u/S-17(3) is limited to deciding the legality of measures taken by secured creditors u/S-13(4), therefore it cannot decide the matters which are not in relation to such measures u/S-13(4).