Fraud vitiates everything and the matter is no more resintegra, kindly google and find out all citations on fraud.
Confine to one issue in one post. The main issue posted by you was: Can Sarfaesi and RDB act proceed simultaneously for a secured mortgage loan under ten lakhs?
Then it has gone to issue of fraud, and finally, it stopped at .what if the borrower files rejection petition under CPC ?
Let the court decide on such borrower's rejection petition if he has filed it with clean hands and unless the entire facts/law is studied as stated in the petition, one can not get a full picture of the issue and maintainability of the petition.