1 C.R.A.No.97/2011 IN THE HIGH COURT OF JUDICATURE AT BOMBAY, BENCH AT AURANGABAD CIVIL REVISION APPLICATION NO.97 OF 2011 Housing Development Finance Corporation Ltd., Branch Office, Aurangabad through its Branch Manager ..Applicant (Orig.Deft.No.1) VERSUS 1. Mohit Govindrao Kale, Age 38 years, Occu.Business, R/o Saikrupa Apartments, Fazalpura, Labour Colony, Aurangqabad 2. Dhiraj Shantilal Ostwal, Age 37 years, Occu.C.A., R/o Mahaveer Medical Stores, Khadkeshwar, Aurangabad ..Respondents (Resp.No.1 Orig.Pltff. Resp.No.2 Orig.Deft. No.2) Mr S.V.Adwant, Advocate for applicant Mr P.N.Sonpethkar, Advocate for respondent No.1 Mr A.S.Deshmukh, Advocate for respondent No.2 CORAM : K.U.CHANDIWAL, J. DATE : 7.12.2011 ORAL JUDGMENT 1. Rule. Rule returnable forthwith. With the consent of learned Counsel for the parties, heard finally at the stage of admission. 2. Rejection of Exh.31 in R.C.S.No.469 of 2008, moved by defendant No.1 (revision applicant – HDFC) on 3.8.2010, seeking rejection of the plaint, as Court lacs jurisdiction to try and entertain the suit is challenged in the Civil Revision Application. 2 C.R.A.No.97/2011 3. The case of the plaintiff (Respondent No.1) is, as a builder he developed the property, Flat No.7 agreed to be sold to defendant No.2 (respondent No.2 in C.R.A.). Respondent No.2 availed financial facilities from the revision applicant. Non payment thereof in time resulted in taking possession of the property possessed by respondent No.1, hence, he filed suit for declaration that seizure of said Flat No.7 (suit property) and its attachment, by defendant No.1 (HDFC) is illegal, void, ab initio. He prayed HDFC be directed to remove attachment and seal affixed by them and hand over flat to plaintiff (respondent No.1). 4. Before adverting to the rival submissions, basic feature of Order VII, Rule 11 (d), C.P.C. needs to be considered. It is the plaint averments which are germane is deceive. 5. The plaint averments coupled with the prayer clause illustrate knowledge of attachment and seizure of said Flat No.7 by HDFC to the plaintiff (Respondent No.1) In paragraph 15 of the plaint, the respondent No.1 has stated that he has entered into an agreement in respect of said flat in favour of defendant No.2 (respondent No.2). In para 17 he asserts, he has not given any consent to the defendant No. 2 and 1 for mortgage of property i.e. Flat No.7. In para 12 the respondent No.1 asserts that he made query with defendant No.2 (original borrower) about illegal activities of defendant No.1 (HDFC). Orally the defendant No.2 has assured to clear off the dues of HDFC but has not given details and also failed to keep his words. Paragraph 3 C.R.A.No.97/2011 8 informs, in the year 2007 in January HDFC has attached the Flat No.7 in the said building. 6. The revision applicant (HDFC) has raised two basic contentions; (a) The Court of learned Civil Judge, Junior Division lacs pecuniary jurisdiction, as the nature of relief being declaratory and seeking injunction, payment of ad valorem court fee is imperative, as substantial rights are adjudicated upon in the flat for which financial facilities exceeded more than Rs. 4 lakhs and the liability was Rs. 6,32,936/- as could be seen referred in the notice annexed in the plaint. Learned Counsel submits, it is preposterous to hold, Respondent No.1 had no knowledge of HDFC’s change or financial facilities extended to Respondent No.2. (b) The transaction of HDFC Bank with the borrower (respondent No. 2) is governed by the provisions of Securitisation and Re-construction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, “SARFASI Act”) and consequently, in terms of Section 34 jurisdiction of Civil Court to entertain the suit is specifically barred and the learned Judge could not have entertained the suit. 7. The learned Counsel for the respondent No.1 (plaintiff) submits, there is no document executed by plaintiff in favour of (HDFC) to mortgage the property. Consequently, there is nothing to show 4 C.R.A.No.97/2011 security interest is created in favour of the Bank. It was explicit that the revision applicant should have inform illegality in the order of the learned Judge while rejecting the application, Exh.31. 8. The overall effect of the plaint informs that under a financial arrangement by HDFC financial facilities were extended for purchase of the Flat No.7 by original defendant No.2 (respondent No.2). The loan and its disbursal would squarely be governed by definition 2 (1) (zf) which conceive, “security interest” means “right, title and interest of any kind whatsoever upon property, created in favour of any secured creditor and includes any mortgage, charge, hypothecation, assignment other than those specified in section 31” 9. Section 34, and plaint assertions, if read together, in juxtaposition does not primarily create a refutable situation. The term "secured debt" defined in Section 2 (1) (ze) means “a debt which is secured by any security interest;”. 10. Section 17 of SARFASI Act contemplates right to appeal, “Any person (including borrower), aggrieved by any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor or his authorised officer under the said Chapter can prefer appeal before a lawfully established Tribunal.” The proviso clarifies the situation about payment by different slabs for making such application by the borrower and by the person other than the borrower. 5 C.R.A.No.97/2011 11. The Division Bench of this Court in the matter of State Bank of India Vs. Jigishaben B.Sanghavi and others, reported in 2011 (2) Mh.L.J.342 indicated that “the expression, “any person” includes not only the borrower, but any person who is aggrieved by a measure which is taken by the secured creditor.” 12. Plaint proceeds that the Bank has caused attachment and has taken possession of the Flat by way of seizure thereof. In the light of such knowledge as pleaded in the plaint, it was imperative for the plaintiff (respondent No.1) to have resorted by an appeal before the appropriate forum - the Debts Recovery Tribunal established to take care of such claims and contentions of the aggrieved person. The plaintiff, in the set of above facts, having chosen a wrong forum of civil Court has to face the brunt under Section 34 of the SARFASI Act and consequently, primarily, even accepting the averments in the plaint, it is more than clear Civil Court has no jurisdiction to entertain the plaint. Exh.31 in R.C.S.No.469 of 2008 before the learned Civil Judge, Junior Division, Aurangabad is allowed. The plaint is rejected in terms of Order VII, Rule 11(d) of C.P.C., to be presented in proper forum as per the statutory arrangement. Civil Revision Application allowed. Rule made absolute. No costs. ( K.U. CHANDIWAL, J.) (vvr/97.11cra)