Section 34 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
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).
Summary
- Normal civil courts are completely banned from handling cases related to this law.
- If a matter is supposed to be decided by the Debts Recovery Tribunal or the Appellate Tribunal under this Act, a civil court cannot intervene.
- Civil courts and other authorities are forbidden from issuing an injunction (a legal order to stop an action) against any steps taken by a lender under this Act.
- This rule ensures that debt recovery is fast and not delayed by long lawsuits in regular courts.
Practical examples
FAQ
1. Can I go to my local civil judge to stop a bank from selling my property?
No. Civil courts do not have the power to hear these cases or stop the bank. You must go to the Debts Recovery Tribunal.
2. What is an injunction, and why can't a court give me one?
An injunction is a court order telling someone to stop doing something. The law specifically bans civil courts from giving injunctions against actions taken under this Act to prevent people from dragging out the debt recovery process.
3. Who actually has the power to hear my side of the story?
The Debts Recovery Tribunal and the Appellate Tribunal are the authorities empowered to hear disputes under this Act.
Test yourself
Q1.Under Section 34 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, which judicial body is explicitly stripped of jurisdiction to entertain suits regarding matters under this Act?
Q2.Under Section 34 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, what specific legal remedy is a civil court forbidden from granting against an action taken under this Act?
Q3.Under Section 34 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, which bodies are recognized as having the power to determine matters under this Act?
Q4.Section 34 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 blocks injunctions against actions taken under this Act, as well as actions taken under which other specific Act?