S.34 SARFAESI Act | Civil Court's Jurisdiction Not Ousted When Remedy Cannot Be Effectively Addressed By Tribunal: Madras High Court
Live LawWhile dismissing an application filed under Section 34 of the SARFAESI Act to reject a plaint on the ground that the court's jurisdiction was ousted, the Madras High Court observed that the civil court's jurisdiction is not ousted when the remedy sought cannot be effectively addressed by the Tribunal. Though the bank had challenged the suit claiming that the court’s jurisdiction was ousted, the court noted that even the tribunal had opined that the party’s claims with respect to joint possession could be dealt by a civil court only. The apartment owners also challenged the application submitted that the bar under Section 34 of the SARFAESI Act did not totally bar the jurisdiction of the civil court if the remedy available under the Act was not adequate. The court noted that the apartment owners had made allegations claiming that there were prima facie materials to infer collusion between the bank officials and the defendants in getting financial assistance.