Friday, November 21, 2025

SARFAESI Act, 2002 — S. 34 — Bar of Civil Court jurisdiction — Scope and limits — Civil suit for cancellation of registered Sale Deed — DRT’s jurisdiction limited — DRT has no jurisdiction to cancel or set aside a registered conveyance — Relief sought falling outside SARFAESI framework — Civil Court jurisdiction not barred — Suit maintainable.

A. Code of Civil Procedure, 1908 — Order VII Rule 11 — Rejection of plaint — Scope of enquiry — Parameters — At O.7 R.11 stage, Court confined to plaint averments; correctness/veracity not examined — Absence of FIR or criminal complaint not a ground to reject plaint — Pleadings asserting coercion, threats, misrepresentation raise triable issues — Whether particulars of fraud under O.6 R.4 sufficient — Deficiency, if any, curable — Factual discrepancies (e.g., MoU signing) cannot form basis for rejection.

(Paras 16, 17, 18, 19, 20)

B. Indian Contract Act, 1872 — Ss. 10 & 14 — Free consent — Coercion, misrepresentation — Effect on validity of sale deed — Plea that execution of registered Sale Deed vitiated by coercion, undue influence, misrepresentation raises a substantive cause of action — Sale deed, if not outcome of free consent, can be declared void.

(Paras 18, 22)

C. Indian Evidence Act, 1872 — Ss. 91 & 92 — Bar on oral evidence to contradict written document — Applicability arises only at evidentiary stage — Cannot be invoked to reject plaint at threshold under O.7 R.11.

(Para 21)

D. SARFAESI Act, 2002 — S. 34 — Bar of Civil Court jurisdiction — Scope and limits — Civil suit for cancellation of registered Sale Deed — DRT’s jurisdiction limited — DRT has no jurisdiction to cancel or set aside a registered conveyance — Relief sought falling outside SARFAESI framework — Civil Court jurisdiction not barred — Suit maintainable.

(Paras 24, 25)

E. SARFAESI Act, 2002 — DRT jurisdiction — Cancellation of Sale Deed — Supreme Court in Central Bank of India v. Prabha Jain, (2025) 4 SCC 38 — Applied — DRT cannot adjudicate cancellation of registered sale deed — Civil court proper forum.

(Para 25)

F. Civil Procedure — Order VII Rule 11 — Rejection permissible only when plaint does not disclose cause of action or suit ex facie barred by law — Remote likelihood of success irrelevant — Learned Single Judge’s reasons unsustainable — Impugned order set aside — Suit restored.

(Paras 23, 26, 27)

G. SARFAESI proceedings — Measures taken by secured creditor — Challenge to Sale Deed antecedent to mortgage — Reliefs for cancellation of sale deed and injunction — Not barred by S.34 — Availability of SARFAESI remedy does not eclipse jurisdiction of civil court where cancellation of deed sought.

(Paras 24, 25)

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