In Brief
A company that mortgaged its factory land as a guarantor challenged the validity of a debt assignment under the SARFAESI Act after the principal debtor's debt was discharged through insolvency proceedings. The company filed a civil suit alleging fraud in the assignment but the High Court dismissed it as barred by Section 34 of the SARFAESI Act, which grants exclusive jurisdiction to Debt Recovery Tribunals. The Supreme Court upheld dismissal, holding that merely using the word 'fraud' without specific particulars cannot overcome the jurisdictional bar. The Court ruled that such matters must be resolved by the DRT under Section 17 of the SARFAESI Act, not civil courts.
The lawyer headnote and full judgment text are available to registered users.