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Indian Bank vs M/S Nippon Enterprises South .

Supreme Court17 February 2016Kurian Joseph · Rohinton Fali Nariman

Ratio decidendi

The rule this decision rests on

A bank that has succeeded in SARFAESI proceedings against the owner of secured assets has no automatic right to evict a tenant in occupation of those premises; once a tenancy is created, a tenant can be evicted only by following the due process of law prescribed under the Rent Control Act, and the provisions of the SARFAESI Act cannot be used to circumvent the statutory protections afforded to tenants under rent control legislation.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1

NON-REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. 5610-5611 OF 2011

INDIAN BANK Appellant(s)

VERSUS

M/S NIPPON ENTERPRISES SOUTH & ORS. Respondent(s)

J U D G M E N T

KURIAN, 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 Vs. Bank of India & 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 Signature Not Verified evicted only after following the due Digitally signed by Rajni Mukhi Date: 2016.02.23 17:35:14 IST Reason: process of law, as prescribed under the

provisions of the Rent Control Act. A

tenant cannot be arbitrarily evicted by 2

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.

.......................J. [ KURIAN JOSEPH ]

.......................J. [ ROHINTON FALI NARIMAN ]

New Delhi;

February 17, 2016.

3

ITEM NO.103 COURT NO.11 SECTION XII

S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS

Civil Appeal No(s). 5610-5611/2011

INDIAN BANK Appellant(s)

VERSUS

M/S NIPPON ENTERPRISES SOUTH & ORS. Respondent(s)

(with appln. (s) for directions and urging facts, grounds & bringing on record additional documents and permission to place addl. documents on record and office report)

Date : 17/02/2016 These appeals were called on for hearing today.

CORAM : HON'BLE MR. JUSTICE KURIAN JOSEPH HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN

For Appellant(s) Mr. Dhruv Mehta, Sr. Adv.

Mr. Himanshu Munshi, Adv.

Mr. Durga Dutt, Adv.

Mr. Manish Garani, Adv.

For Respondent(s) Mr. S. Nanda Kumar, Adv.

Mr. Parivesh Singh, Adv.

Mr. R. Satish Kumar, Adv.

Mr. M. S. Saran Kumar, Adv.

Mr. P. Srinivasan, Adv.

Mr. Baljeet S. Rathore, Adv.

Mr. V. N. Raghupathy, Adv.

Mr. Abhay Kumar, Adv.

UPON hearing counsel the Court made the following O R D E R

The appeals are dismissed in terms of the signed

non-reportable Judgment.

Pending interlocutory applications, if any, are disposed of.

(Jayant Kumar Arora) (Renu Diwan) Sr. P.A. Court Master

(Signed non-reportable Judgment is placed on the file)

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