In Brief
A bank initiated securitisation proceedings against Anandhakumar Mills Ltd under the SARFAESI Act. When a third party (Nandini) filed a partition suit in civil court claiming interest in the mortgaged property, the High Court upheld the suit as maintainable. The Supreme Court reversed this, holding that civil courts lack jurisdiction once SARFAESI proceedings commence. The Court directed the third party to pursue her grievance before the Debt Recovery Tribunal, which provides an adequate statutory remedy. The auction sale in favour of the bank was confirmed, with the direction that the property not be further encumbered pending DRT proceedings."> </invoke>
The lawyer headnote and full judgment text are available to registered users.