Bank sought rejection of a specific-performance plaint claiming a Section 34 SARFAESI bar. The High Court held specific performance cannot be determined by the DRT under SARFAESI, so no bar arises; the revision petition was rejected.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
NC: 2024:KHC:9472 CRP No. 146 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF MARCH, 2024
BEFORE
THE HON'BLE MR JUSTICE N S SANJAY GOWDA CIVIL REVISION PETITION NO. 146 OF 2024 (IO)
BETWEEN:
…PETITIONERS
Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA
(BY SRI. Y.P GOKUL., ADVOCATE)
NC: 2024:KHC:9472 CRP No. 146 of 2024
VAJARAHALLI, TALAGHATTAPURA POST, KANAKAPURA MAIN ROAD, BENGALURU - 560 062.
VAJARAHALLI, TALAGHATTAPURA POST, KANAKAPURA MAIN ROAD, BENGALURU - 560 062.
ASHRAM ROAD, YELACHANAHALLI, BENGALURU-560 078.
NC: 2024:KHC:9472 CRP No. 146 of 2024
RESIDING AT NO.108, DODDA GETKRULU, HOSAKOTE TALUK - 562 114.
ALL ARE REPRESENTED BY THEIR GPA HOLDER, M/S. MAHAGHAR PROPERTIES PVT. LTD., A PRIVATE LIMITED COMPANY, HAVING ITS OFFICE AT NO.95, I FLOOR, 4TH CROSS, PAI LAYOUT, OPP: FOOD WORLD REGIONAL OFFICE, BANNERUGHATTA ROAD, BENGALURU-560 076, REPRESENTED BY ITS DIRECTOR, SRI.K.N.PURUSHOTHAM REDDY.
…RESPONDENTS
(BY SRI.H.S PRADEEP., ADVOCATE FOR C/R1)
THIS CRP IS FILED UNDER SECTION 115 OF CPC, AGAINST THE ORDER DATED 07.12.2023 PASSED IN OS.NO.2551/2022 ON THE FILE OF THE XLII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU, REJECTING THE I.A.NO.III FILED UNDER ORDER VII RULE 11(d) R/W SEC.94(e) AND 151 OF CPC FOR REJECTION OF PLAINT.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
Respondent No.1 instituted a suit seeking for a decree of specific performance in respect of the property on the basis of a registered agreement dated 29.01.2019 against several defendants including the Bank to which the property had been mortgaged.
NC: 2024:KHC:9472 CRP No. 146 of 2024
cannot be a matter, which could be decided by the Debt recovery Tribunal and therefore, there would be a bar for instituting the suit.
34. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debts Recovery Tribunal or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993).
jurisdiction of the Civil Court would be barred in respect of
any suit, in respect of a subject matter of which only the Debts recovery Tribunal or the Appellate Tribunal was empowered to determine. The entitlement of the person to secure a decree for specific performance on the basis of an agreement of sale cannot obviously be a subject matter of a proceeding before the Debuts Recovery Tribunal and such a proceeding cannot be entertained by the Debts Recovery Tribunal under the SARFAESI ACT. Therefore,
NC: 2024:KHC:9472 CRP No. 146 of 2024
the question of there being a bar under Section 34, would
not arise.
entertain the revision petition and the Trial Court was justified in passing the impugned order. Hence, Revision
petition is therefore rejected .
Sd/JUDGE
RMS List No.: 1 Sl No.: 3
1 issue framed by the court
Whether Section 34 SARFAESI Act bars a civil suit for specific performance against mortgaged property, warranting rejection of the plaint.
3 provisions across 2 enactments
Karnataka Bank Ltd.
Rajashekar J
Venkatamma
Rathnamma
Byramma M
Mahaghar Properties Pvt. Ltd.
N S Sanjay Gowda
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
