Sections 34 and 35 of the SARFAESI Act, 2002: Jurisdiction and Overriding Effect

Section 34 restricts civil court jurisdiction only where the Debts Recovery Tribunal or Appellate Tribunal is empowered to decide the matter. Section 35 gives the SARFAESI Act priority over inconsistent provisions of other laws.

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a Debts Recovery Tribunal or the Appellate Tribunal is empowered by or under this Act to determine and 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 or under this Act or under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993).

The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.

Section 34: Meaning and scope

The bar applies to matters assigned to the DRT or Appellate Tribunal, including review of measures under Section 13(4) through Section 17. It is not a blanket exclusion of all civil suits involving mortgaged property. Section 17 generally permits an aggrieved person to approach the DRT within 45 days after a measure under Section 13(4).

Civil court jurisdiction and title disputes

The Supreme Court in Central Bank of India v. Prabha Jain (2025 INSC 95) explained that disputes about underlying title or validity of documents outside the powers of the DRT may remain triable by civil courts. The substance of the pleadings and relief, rather than the description of the suit alone, determines jurisdiction.

Section 35: Overriding effect

Section 35 gives effect to the SARFAESI Act notwithstanding an inconsistent provision in another existing law or an instrument deriving effect from such a law. It operates where a genuine inconsistency arises and does not automatically displace every other statute.

Reading Section 35 with Section 37

Section 37 preserves the additional operation of other laws insofar as they are compatible with the SARFAESI framework. Sections 34, 35 and 37 must therefore be read harmoniously.

Relevant statutory remedies

Section 13 concerns enforcement of security interest; Section 17 provides the DRT remedy against measures under Section 13(4); and Section 18 provides an appeal to the Debts Recovery Appellate Tribunal, subject to statutory conditions.

India Code (official legislation) | Supreme Court: Prabha Jain judgment | Supreme Court: Jagdish Singh judgment