STATE BANK OF INDIA vs M/S. RANJAN CHEMICALS LTD.

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 under Section 19(9) of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The Court affirmed the High Court's decision that the civil court had jurisdiction to hear the suit for damages, as it arose from a different cause of action than the bank's claim in the Debt Recovery Tribunal. Consequently, the appeal by the bank for transferring the suit was dismissed, upholding the civil court's authority to proceed with the case.