In Brief
State Bank of Patiala lent Rs.8 lakh to a debtor who defaulted, prompting the bank to initiate recovery proceedings under the Securitisation Act. The debtor challenged these proceedings in civil court. The bank argued civil courts lack jurisdiction under Section 34 of the Securitisation Act. The courts rejected this, reasoning the Debt Recovery Tribunal had no jurisdiction because the debt was under Rs.10 lakh. The Supreme Court held that while the Tribunal's original jurisdiction requires a minimum debt of Rs.10 lakh, it has appellate jurisdiction under Section 17 of the Securitisation Act regardless of amount. Section 34 bars civil courts entirely; debtors must appeal to the Tribunal. The judgment was set aside.
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