SARFAESI ACT

INDIAN BANK Vs. NIPPON ENTERPRISES SOUTH AND OTHERS

It is a settled position of law that once tenancy is created, a tenant can be evicted only after following the due process of law, as prescribed under the provisions of the Rent Control Act. A tenant cannot be arbitrarily evicted by using the provisions of the SARFAESI Act as that would amount to stultifying the statutory rights of protection given to the tenant….

SUPREME COURT OF INDIA

DIVISION BENCH

( Before : Kurian Joseph and Rohinton Fali Nariman, JJ. )

INDIAN BANK — Appellant

Vs.

NIPPON ENTERPRISES SOUTH AND OTHERS — Respondent

Civil Appeal Nos. 5610-5611 of 2011

Decided on : 17-02-2016

SARFAESI Proceedings

Cases Referred

Vishal N. Kalsaria Vs. Bank of India, (2016) 1 SCALE 172

Counsel for Appearing Parties

Dhruv Mehta, Sr. Adv., Himanshu Munshi, Durga Dutt and Manish Garani, Advocates, for the Appellant; S. Nanda Kumar, Parivesh Singh, R. Satish Kumar, M.S. Saran Kumar, P. Srinivasan, Baljeet S. Rathore and V.N. Raghupathy, Advocates, for the Respondent

JUDGMENT

Kurian Joseph, J.—1. The short issue to be decided in these appeals is whether the Appellant, who has been successful in the SARFAESI proceedings against the owner of the secured assets, automatically can have the same say as against the tenant in the premises.

2. That issue has been considered in the various Judgments of this Court and the latest one is in “Vishal N. Kalsaria v. Bank of India and Ors.” in Crl. Appeal No. 52 of 2016 decided on 20.01.2016, reported in , (2016) 1 SCALE 172 and at paragraph 30, this Court has observed as under:

It is a settled position of law that once tenancy is created, a tenant can be evicted only after following the due process of law, as prescribed under the provisions of the Rent Control Act. A tenant cannot be arbitrarily evicted by using the provisions of the SARFAESI Act as that would amount to stultifying the statutory rights of protection given to the tenant….

3. In view of the above, these appeals are dismissed. However, we make it clear that the dismissal of these appeals shall not stand in the way of the Appellant-Bank taking recourse to any remedy under any law for evicting the first Respondent.

No costs.


(2016) AllSCR 866 : (2016) 3 JT 46 : (2016) 3 Scale 378

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