Consumer Commission Has No Jurisdiction To Entertain Matters Coming Under Purview Of SARFAESI Act: Orissa High Court
5 months, 3 weeks ago

Consumer Commission Has No Jurisdiction To Entertain Matters Coming Under Purview Of SARFAESI Act: Orissa High Court

Live Law  

The Orissa High Court has held that the Consumer Commissions do not have jurisdiction to entertain any suit or proceeding which is subject matter of adjudication by Debt Recovery Tribunal or Appellate Tribunal under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Clarifying the jurisdictional issue, the Division Bench of Justice Debabrata Dash and Justice V. Narasingh observed – “…it is evident that Section 34 prescribes the jurisdictional bar for entertaining any suit or proceeding which can be entertained by the Debt Recovery Tribunal or the Appellate Tribunal and specifically it has been mentioned that no injunction shall be granted by any Court or other authority in respect of any action in present day or in future to be taken under the SARFAESI Act.” Factual Background The first opposite party was one of the mortgagors and guarantors for the credit facilities availed by one company. Challenging such notice, the first opposite party approached the District Consumer Commission, Jharsuguda under Section 35 of the Consumer Protection Act. There cannot be any iota of doubt that the expression “other authority” will encompass the “Consumer Commissions”.” Further, it held that if Section 35 of SARFAESI Act is read along with Section 37 juxtaposed with Section 100 of the Consumer Protection Act, it is clear that any action that is taken or contemplated under the SARFAESI Act or RDDB Act has to be governed by the SARFAESI Act or RDDB Act alone and all other laws except those mentioned in Section 37 of SARFAESI Act have to yield to the same. “The least that can be expected from the learned President and the Members of the District Commissions that before passing any order relating to any alleged violation vis-à-vis the provisions of any Special Act they will test the propositions claiming the reliefs on the touchstone of law governing the field which would enable them not to embark upon a journey which will lead to avoidable litigation and denude the faith of the common man in the fairness and effectiveness of the redressal mechanism and which will also not render otiose, the intent of the legislature in enacting Special Statutes.” The Court also hoped that the Consumer Commissions will refrain from 'judicial adventurism' while dealing with special legislations.

History of this topic

SARFAESI Act | As per Unamended S.13(8), Borrower Has Right To Redeem Available Till Sale Certificate Is Registered & Possession Is Handed Over : Supreme Court
1 year, 2 months ago
Consumer Commission Can Revive Cases Consigned To Records, Does Not Qualify As Review Or Recall: Jammu & Kashmir High Court
1 year, 2 months ago
Arbitrator Has No Jurisdiction To Set Aside Sale Notice Issued By Secured Creditor Under Section 13(4) Of SARFAESI Act: Delhi High Court
1 year, 10 months ago
State Consumer Commission Not Empowered To Exercise Powers Of Review And Set Aside An Ex-Parte Order: JKL HC Reiterates
2 years ago
Appeal Against NCDRC Order Passed In Execution Proceedings Not Maintainable U/Sec 23 Consumer Protection Act: SC [Read Order]
4 years, 3 months ago

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