Synopsis

An auction purchaser (respondent) purchased secured assets from a co‑operative bank under SARFAESI proceedings. The purchaser filed a civil suit for damages, alleging that the bank delayed handing over possession and failed to clear taxes, causing loss of production and escalation of costs. The bank filed an application under Order VII Rule 11(d) CPC for rejection of the plaint on two grounds: (i) the suit was barred by Section 34 of the SARFAESI Act (civil court jurisdiction), and (ii) no statutory notice under Section 164 of the Maharashtra Co-operative Societies Act, 1960 was served before filing the suit. The trial court rejected the application. The Bombay High Court allowed the bank’s writ petition, holding that the suit was in respect of an act “touching the business of the society” (recovery of loans through auction) and therefore Section 164 notice was mandatory. Since the purchaser was not a “borrower”, the SARFAESI bar did not apply, but the lack of notice under Section 164 was fatal. The plaint was rejected, with liberty to file a fresh suit after issuing notice.

Court: High Court of Judicature at Bombay, Bench at Aurangabad

Coram: Hon’ble Mr. Justice Siddheshwar S. Thombre (Single Judge)

Date of Judgment: 5th May, 2026

Citation: Writ Petition No. (connected matters) (2026:BHC-AUG:2114)

Core Law: Code of Civil Procedure, 1908 – Order VII Rule 11(d) (rejection of plaint); Maharashtra Co-operative Societies Act, 1960 – Section 164 (notice before suit); Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – Sections 13(4), 17, 19, 34 (bar on civil court jurisdiction)

1. Heading of the judgment

High court of judicature at bombay bench at aurangabad

Writ petition no. (connected matters) (lead case: writ petition arising from special civil suit no. 01 of 2012)

Jalgaon peoples co operative bank ltd. and anr. (petitioners) vs. M/s om sai extrusions pvt ltd. (respondent)

Coram: hon’ble mr. justice siddheshwar s. thombre

Date of judgment: 5th may, 2026

2. Legal framework

Major laws and provisions involved:

Code of civil procedure, 1908 – order vii rule 11(d) (rejection of plaint where suit appears from statement in plaint to be barred by any law)

Maharashtra co-operative societies act, 1960 – section 164 (no suit shall be instituted against a society or its officers in respect of any act touching the business of the society until expiration of two months after written notice to the registrar)

Securitisation and reconstruction of financial assets and enforcement of security interest act, 2002 (sarfaesi) – section 13(4) (measures for recovery of secured debts), section 17 (application to drt against measures under section 13(4)), section 19 (right o

... Upgrade to a Premium Plan to view the full judgment.