30/08/2020
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (54 of 2002), Section 13, 17, 34 -- Guidelines of Reserve Bank of India dated 17.3.2016 -- Code of Civil Procedure, 1908 (V of 1908), Order 39 Rule 1 & 2, Section 9 – Proceedings under SARFAESI Act – Civil Suit -- Application under order 39 Rule 1 & 2 -- Maintainability of -- Question of jurisdiction – Stage of – RBI guidelines providing for revival and rehabilitation of Micro, Small and Medium Enterprises (MSME) with loan limits upto 25 crores, sending the case to the Committee before initiating any appropriate action under the SARFAESI Act – Trial Court dismissed the application as barred u/s 34 of the 'SARFAESI Act' -- Lower Appellate Court, relying upon guidelines of RBI dated 17.3.2016, reversed the order of the trial Court – Challenged by Bank in revision -- Held;
-- Whether the company of the plaintiffs falls under MSME or not would be a question of fact to be debated before the trial Court at the relevant stage with reference to the evidence to be led by the parties.
-- For grant of temporary injunction, three principles are required to be appreciated i.e. existence of prima facie case, balance of convenience and irreparable loss to be caused in the event of non grant of temporary injunction
-- Court having no jurisdiction can pass interim order till such time issue of jurisdiction is decided by the Court on merits.
No justification to interfere in revision petition, same is dismissed.
Law Today Live Doc. Id. 15277
