recovery-of-debts-and-bankruptcy-act-faq

FAQ About Suits Filed by Borrower/guarantors in Civil Court

Answer: Original Application filled by the bank cannot be stayed on the basis of previously instituted suit by borrower. Gagan Khosla –Versus- IFCI (2004)1 DRTC 176 (DRAT Delhi).

Answer: It has been held by the Supreme Court of India in the case of Bank of Rajasthan – Versus – V. C. K. Shares & Stock Broking Services Ltd. reported in (2023)1 Supreme Court Cases Page 1 that a defendant in Original Application has the choice of filing counter claim or a separate suit. However, Original Application cannot be stayed till the disposal of the Separate suit. A separate suit cannot be transferred to Debts Recovery Tribunal.
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