Question

Section 34 of the SARFAESI Act contains an ouster clause. What does Section 34 provide?

Q: Answer-Section 34 of the SARFAESI Act contains an ouster clause. What does Section 34 provide?

Section 34 of the SARFAESI Act is the civil court ouster provision. It provides that no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Debts Recovery Tribunal or the Appellate Tribunal DRAT is empowered under this Act to determine. Furthermore, no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by this Act or under the RDDBFI Act, 1993. This provision significantly restricts borrowers from obtaining civil court injunctions against bank enforcement actions under SARFAESI, channelling all disputes to the specialized DRTDRAT framework.

A No civil court shall have jurisdiction to entertain any suit in respect of any matter empowered to be determined by the DRT or Appellate Tribunal under the Act

B No criminal court shall take cognizance of offences under this Act

C The Act shall have no application to proceedings already pending before civil courts

D The District Court shall have exclusive jurisdiction over all securitisation disputes

E Borrowers cannot challenge enforcement actions before any authority

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