Bar under Section 34 of the SARFAESI shall not come in the way of adjudication of the civil rights, like declaration of title of the suit properties, partition rights in the ancestral properties etc., which are mortgaged,

CDJ 2007 MHC 3767

 (The Authorised Officer, Corporation Bank v. Koottu Road, Sheep Farm Post, Attur Taluk, Salem District)

 wherein, in para 16, it has been laid down as follows:-

"16. A comparative reading of all the decisions cited above would make it clear that as per Section 34 of the SARFAEST Act, the Civil Court has no jurisdiction to entertain any suit challenging the proceedings initiated in pursuance of the powers conferred under the said Act and the plaint filed in such suits are liable to be rejected straight away. However, such bar under Section 34 of the SARFAESI shall not come in the way of adjudication of the civil rights, like declaration of title of the suit properties, partition rights in the ancestral properties etc., which are mortgaged, because such claims/rights made are outside the jurisdiction and adjudication of the Debt Recovery Tribunal or Appellate Tribunal under the said Debt Recovery Acts. However, in such suits the civil courts have no jurisdiction to grant either interim stay or interim injunction restraining the secured creditor/bank which is at liberty to proceed with the mortgaged properties for realisation of the amounts in view of the express bar contained under Section 34 of the SARFAESI Act, constitutional validity of such provision has been upheld by the Hon'ble Apex Court.