State Bank Of Patiala vs Mukesh Jain & Anr

The Supreme Court held that under Section 34 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Civil Courts lack jurisdiction to entertain matters arising under the Act. The Court found that the rejection of the appellant's application under Order VII Rule 11 of the CPC by both the trial Court and the High Court was erroneous, as the amount claimed was less than Rs.10 lakh, thus falling under the jurisdiction of the Debt Recovery Tribunal as per Section 1(4) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993. The appeal was allowed, and the matter was directed to be adjudicated by the appropriate tribunal.