Case Note & Summary
The petitioners, Dr. Jaishith Jebakumar Manuel and Pon Manju Usha, filed a suit (O.S.No.118 of 2025) before the Principal District Munsif, Nagercoil, seeking a declaration that a notice dated 13.05.2025 issued by the respondent bank (Federal Bank) was sham, nominal, fictitious, fraudulent, null and void ab initio, along with a permanent injunction restraining the bank from selling the plaint schedule properties. During the pendency of the suit, the petitioners filed an interim application (I.A.No.2 of 2025) for an interim injunction to restrain the bank from conducting the sale. However, the Trial Court did not consider the application and merely adjourned the matter periodically. Aggrieved, the petitioners filed the present Civil Revision Petition under Article 227 of the Constitution of India. The learned Senior Counsel for the petitioners argued that the Trial Court had no jurisdiction to entertain the suit as the matter fell under the SARFAESI Act, 2002, and the remedy lay before the Debts Recovery Tribunal under Sections 17 and 34 of the Act. The High Court observed that the Trial Court's failure to consider the interim application was improper and that the suit itself may not be maintainable due to the bar on civil court jurisdiction under the SARFAESI Act. The Court allowed the revision petition, set aside the impugned order, and directed the Trial Court to consider the interim application on its merits and pass appropriate orders within a specified time frame.
Headnote
A) Civil Procedure - Interim Injunction - Trial Court's Failure to Consider Application - The Trial Court adjourned the interim application without passing any order, causing prejudice to the petitioners. The High Court held that the Trial Court must consider such applications expeditiously and not delay the matter. (Paras 3-5) B) SARFAESI Act - Jurisdiction of Civil Court - Bar under Section 34 - The suit for declaration and injunction against the bank's notice under SARFAESI Act is not maintainable as the jurisdiction of the civil court is barred. The remedy lies before the Debts Recovery Tribunal under Section 17 of the SARFAESI Act, 2002. (Paras 4-6) C) Constitutional Law - Article 227 - Power of Superintendence - The High Court can interfere when a subordinate court fails to exercise its jurisdiction or acts illegally. The impugned order was set aside and the Trial Court was directed to consider the interim application on merits. (Paras 5-7)
Issue of Consideration
Whether the Trial Court's failure to consider the interim injunction application and its lack of jurisdiction to entertain the suit under the SARFAESI Act, 2002, warrants interference under Article 227 of the Constitution of India.
Final Decision
The Civil Revision Petition is allowed. The impugned order dated 05.12.2025 passed by the learned Principal District Munsif, Nagercoil, in I.A.No.2 of 2025 in O.S.No.118 of 2025 is set aside. The Trial Court is directed to consider the interim application on its merits and pass appropriate orders within a period of four weeks from the date of receipt of a copy of this order.
Law Points
- Civil Court jurisdiction barred under Section 34 of SARFAESI Act
- 2002
- for matters relating to recovery of debts
- remedy lies before Debts Recovery Tribunal under Section 17 of SARFAESI Act
- Trial Court must consider interim application without delay.
