M/s Speed Airways Pvt Ltd. a borrower, filed a case before a civil court that Diligent Bank, a secured creditor, has not issued any letter to the company for demanding of repayment of loan and stating its intention to en

The facts of present case are similar to case of M/s Golf Technologies (P). Ltd. & Anr v. Axis Bank Ltd. & Ors (Del) where the issue was that the company stated that the letter dated 31st December, 2012 was not issued and that it was fraudulently created by the bank, hence the transfer of monies from the plaintiffs' account to M/s Tulip Telecom Limited was wrong and the said amount was depleted from their account only to classify it as an NPA. This according to the plaintiff amounts to fraud and would form the basis of the maintainability of the present suit. The ground alleged in the suit is fraud by the bank played upon the plaintiff. Suit was dismissed on the ground that civil court has no jurisdiction to decide the case which Debt Recovery Tribunal has power except in case of fraud. Court was of the view that the ground of fraud raised by the plaintiff can be duly addressed in proceedings under Section 17 of the Act. Accordingly, the case of M/s Speed Airways Pvt. Ltd. will not be maintainable in the court. It can approach Debt Recovery Tribunal.