In Brief
Bank of Rajasthan sought recovery of defaulted loans from VCK Shares & Stock Broking through the Debt Recovery Tribunal. VCK filed separate civil suits in the High Court challenging the sale of pledged shares and claiming relief. The Supreme Court resolved conflicting precedents on whether borrowers' independent civil suits must be transferred to the DRT. Held: (1) Civil Court jurisdiction over borrower suits is not ousted by the RDB Act; (2) No power exists to transfer independent suits to the DRT; (3) Borrowers may choose between filing counterclaims before the DRT or separate civil suits, but cannot use civil suits to delay DRT proceedings. The appeals were dismissed.
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