State Bank Of India vs Ranjan Chemicals Ltd. And Anr

The Supreme Court held that the suit filed by M/s. Ranjan Chemicals Ltd. for damages against the State Bank of India was not a counter claim to the bank's application under Section 19(1) of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The Court affirmed the High Court's ruling that the civil court had jurisdiction to hear the suit for damages, as it was independent of the bank's claim for recovery of the loan. The Court concluded that the bank's request for transfer to the Debt Recovery Tribunal was rightly denied, maintaining the civil court's authority to adjudicate the matter.