The Calcutta High Court ruled that Section 34 of the SARFAESI Act prevents civil courts from granting injunctions against secure creditors, thereby validating Axis Bank's actions.
Relief to Axis Bank: Section 34 SARFAESI Act Bars Civil Court Injunction Against Secured Creditor
The Calcutta High Court has provided significant relief to Axis Bank by affirming that Section 34 of the SARFAESI Act prohibits civil courts from issuing injunctions against measures taken by secured creditors. This ruling clarifies the extent of judicial intervention in matters of secured creditor actions.
The court highlighted that the SARFAESI Act aims to ensure a streamlined process for the recovery of debts by secured creditors without interference from civil courts. As a result, the measures taken by Axis Bank to recover dues are validated under the statute.
This decision serves as a reinforcing precedent for financial institutions regarding their recovery processes regarding secured assets. Practitioners in banking and finance must now structure their engagements around this judicial affirmation, as it consolidates the authority of secured creditors to act without facing civil court injunctions.
Citations
- Axis Bank Case (2026) 3 Cal 120
