Charu Kishor Mehta vs Prakash Patel & Ors

Bench: 2 — UNKNOWN, UNKNOWN

In Brief

A widow with outstanding bank dues of Rs. 277 crores sought to prevent an auction of her property conducted by a Debts Recovery Tribunal after she defaulted on a settlement. The petitioner filed a Civil Court suit claiming fraud by the auction bidders, but the courts rejected it as barred by Section 34 of the SARFAESI Act, which denies civil courts jurisdiction over matters within a DRT's authority. The Supreme Court upheld the rejection, finding the fraud allegations vague and unsupported by particulars, and that the petitioner had abused the legal process by filing multiple dismissed petitions while concealing earlier appeals.

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Debtor and Creditor Asset Reconstruction Company Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Civil Procedure Jurisdiction of Civil Courts Fraud and Collusion

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