Bombay High Court Rejects Plaint Rejection Application, Holds Suit Maintainable Despite RDB Act Bar

Case Snapshot

• Case Name: Asset Reconstruction Company (India) Ltd. v. Union of India & Ors.

• Citation: Interim Application (L) No. 10519/2026 in Commercial Suit No. 111/2015

• High Court: High Court of Judicature at Bombay, Ordinary Original Civil Jurisdiction

• Bench: Hon'ble Ms. Justice Gauri Godse

• Date of Judgment: 18th August, 2026

• Area of Law: Civil Procedure, Debt Recovery, Jurisdiction, Order VII Rule 11 CPC

Judgment Headline

Court rejects plaint rejection application, holds suit to enforce subrogation rights maintainable despite RDB Act bar.

The Judgment in One Line

Bombay High Court rejected application to reject plaint, holding civil court jurisdiction not barred as suit relates to subrogation rights, not debt recovery.

Why This Judgment Matters

This judgment clarifies the scope of the bar under Section 18 of the Recovery of Debts and Bankruptcy Act, 1993. It establishes that civil court jurisdiction is not ousted where the suit does not seek recovery of debt but rather enforcement of subrogation rights or challenge to a Memorandum of Understanding (MOU) that allegedly defeats such rights. The ruling draws a distinction between matters fa

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