In Brief
Sree Anandhakumar Mills Ltd, an auction purchaser, challenged a High Court order that held a partition suit by a third party (Nandini) maintainable and invalidated the auction sale. The Supreme Court set aside the High Court's order, holding that a suit for partition is not maintainable under Section 34 of the SARFAESI Act when debt recovery proceedings are pending. The Court found that the aggrieved party has an adequate remedy before the Debts Recovery Tribunal under Section 17 of the Act. The sale was confirmed, but the Court directed the purchaser not to transfer the property and permitted the respondent to file her claims before the DRT within 45 days.
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