In Brief
Canara Bank obtained a decree from the Debt Recovery Tribunal in 2003 against a borrower and guarantor for loan recovery. Over fifteen years later, purchasers of mortgaged property filed civil suits claiming the DRT decree was obtained by fraud, but alleging fraud only in a partnership deed, not in the guarantor's mortgage or guarantee deed. The Supreme Court held that civil suits challenging a DRT decree must first exhaust the appeal remedy under the Recovery of Debts due to Banks and Financial Institutions Act. The Court also found the plaints vexatious and meritless, as the fraud allegations were illusory and specific to documents not in issue. The appeals were allowed and the plaints rejected.
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