Omnarayansri Agrifarmer Pvt. Ltd. Vs Punjab National Bank and 2 others (Allahabad High Court)
Allahabad High Court held that the Commercial Court was justified in rejecting the plaint as well as injunction application, as the suit was barred under Section 34 of the SARFAESI Act. The bar of civil court applies to all matters which may be taken cognizance of by the Debt Recovery Tribunal.
Facts- The plaintiff obtained a cash credit limit and term loan facility from the respondent-Bank for running its business and executed certain documents in relation thereto. After exchange of certain communications between the appellant and the Bank, the bank account of the appellant was declared as Non-Performing Assets (N.P.A.) on 29/30.07.2024.
The appellant filed the Commercial Suit No. 1 of 2025 in question with a prayer to declare notice dated 30.07.2024 classifying the appellant’s account as N.P.A., as void for want of requirements prescribed by the Reserve Bank of India and without rescheduling the term loan account. Another prayer made in the plaint was to direct the defendants to pay damages to the tune of Rs.10,00,000/- towards mental agony and loss of business to the plaintiff.
By an order dated 06.08.2024, the Commercial Court rejected the application filed by the appellant seeking exemption from complying with the mandatory provisions of Section 12-A of the Act, 2015. The appellant approached this Court by filing First Appeal From Order (Defective) No. 857 of 2024, which was dismissed by Co-ordinate Bench of this Court by order dated 21.10.2024.
