RDDBFI Section 18: Bar of Jurisdiction of Civil Courts

Bar of Jurisdiction of Civil Courts

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

On and from the appointed day, no court or other authority shall have, or be entitled to exercise, any jurisdiction, powers or authority (except the Supreme Court, and a High Court exercising jurisdiction under articles 226 and 227 of the Constitution) in relation to the matters specified in section 17:

Provided that in relation to the matters specified in sub-section (1) of section 17, any suit or other proceeding pending before any court or other authority shall, on that day, stand transferred to the Tribunal under section 31.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

DRT Jurisdiction Sec 17 Transfer of Cases Sec 31 Overriding Effect Sec 34

Legal Commentary & Landmark Judgments: Section 18

Section 18 enacts a comprehensive statutory bar excluding the jurisdiction of ordinary civil courts in matters assigned to the DRT and DRAT.

Statutory Powers & Jurisdiction: Section 18 provides that on and from the appointed day, no court or other authority shall have, or be entitled to exercise, any jurisdiction, powers, or authority (except the Supreme Court and High Courts under Articles 226 and 227 of the Constitution) in relation to matters specified in Section 17.
Operational Statutory Powers & Jurisdiction: This effectively ousts the jurisdiction of civil courts over debt recovery suits above the statutory threshold.

Key Landmark Precedents:

Mardia Chemicals Ltd. v. Union of India (2004) 4 SCC 311: Reaffirmed the constitutional validity of Section 18's bar on civil court jurisdiction, holding that the ouster is total and absolute, leaving civil courts competent only in extremely narrow cases of genuine fraud.
Nahar Industrial Enterprises Ltd. v. Hong Kong and Shanghai Banking Corp. (2009) 8 SCC 646: Held that while the civil court's jurisdiction over bank claims is barred by Section 18, the DRT is not a full-fledged civil court and cannot try independent civil suits filed by borrowers against banks.

Legal Commentary:

Section 18 is the jurisdictional moat protecting Debt Recovery Tribunals. By precluding civil courts from granting injunctions or entertaining recovery suits, it prevents borrowers from creating procedural bottlenecks.