X Bank filed an application before the Debts Recovery Tribunal for recovery of two crore rupees from a defaulting corporate borrower. The borrower then filed a civil suit in the civil court challenging the same loan transaction. The civil suit -

Section 34 of the Recovery of Debts and Bankruptcy Act, 1993 bars the jurisdiction of civil courts in respect of matters which a Debts Recovery Tribunal or the Appellate Tribunal is empowered to determine, and no injunction can be granted by any court in respect of any action taken in pursuance of any power conferred by the Act. Since the borrower's suit challenges the same loan transaction that is the subject matter of the bank's application under section 19, the civil court has no jurisdiction to entertain it. The exclusive jurisdiction of the Tribunal over recovery claims of banks and financial institutions is precisely why parallel civil proceedings cannot survive, irrespective of leave or transfer orders, whether before or after disposal of the application. The suit is therefore barred under section 34.