Can I file a civil suit against the bank for instituting false proceedings before the DRT? The bank of India has instituted false and frivolous proceedings against me in the DRT. The notice which was issued against me was never served on my address. My advocate has advised me to file a civil suit under section 151 of cpc and challenge the veracity of the proceeding. Proceeding without giving an opportunity to the opposite party is bad therefore I can file a civil suit and challenge the proceeding initiated by the bank.
You cannot file a civil suit for challenging the proceeding instituted under the special law or Act. SARFAESI Act is a special Act and it has special jurisdiction to try a class of cases. When the statutory rights have been given
to the bank to proceed against the defaulter to recover the NPA, the civil court cannot take cognisance in the suit filed under section 151 cpc.
The secured creditor has the right to approach the DRT for taking possession of the secured assets under the SARFAESI Act. In this situation you should withdraw your suit and file a securitisation application or file a counter affidavit in the Original Application filed by the bank.
When you have an alternative remedy to appear in the original application filed by the bank, there is no need to initiate another proceeding which is nowhere connected with the special law.
