In Brief
Punjab & Sind Bank, a secured creditor holding a mortgage over commercial property, sought to enforce its security interest through possession and sale proceedings under the SARFAESI Act. The borrower, Frontline Corporation, filed a civil suit seeking specific performance of an alleged settlement agreement and obtained an injunction preventing the bank from selling the property. The High Court's Division Bench upheld the injunction, relying on promissory estoppel. The Supreme Court reversed this order, holding that the bar on civil court jurisdiction under Section 34 of the SARFAESI Act applies to all matters within the Debt Recovery Tribunal's cognizance, regardless of whether formal enforcement measures have begun. Civil court jurisdiction exists only where fraudulence or absurd claims are established. The Court upheld the Single Judge's discretionary order vacating the injunction as it was reasonably grounded in statutory law.
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