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PAMIDIGHANTAM SRI NARASIMHA, JOYMALYA BAGCHI
PNB Housing Finance Limited – Appellant
Versus
Sh. Manoj Saha – Respondent
JUDGMENT :
Joymalya Bagchi, J.
1. Leave granted.
2. Appellant has assailed the judgment and order passed by High Court whereby the secured asset1[Space of 450 sq.ft. on first floor, 1 Allenby Road, Kolkata – 700020] whose possession was taken by the Appellant, was directed to be handed back to the 1st Respondent.
3.1st Respondent claims to be a tenant of the secured asset. He had entered into an unregistered tenancy agreement with M/s Janapriya Finance and Industrial Investment (India) Pvt. Ltd2[Original landlord] fora period of 5 years. In 1992, the term of tenancy expired. But 1st Respondent alleged he continued as a monthly tenant under the original landlord. In 2007, the original landlord sold the secured asset to 2nd Respondent. By letter of attornment dated 04.03.2008, 2nd Respondent that is, the new landlord called upon 1st Respondent to pay rent. 1st Respondent contends he paid rent to 2nd Respondent and continued to occupy the secured asset as a tenant.
4. On 09.02.2017, 2nd Respondent took a loan from the Appellant against creation of security interest on the premises. A second loan was also taken. The loan account was not serviced and became a NonPerforming Asset (NPA). Dema
The court ruled that tenants must provide substantial evidence of tenancy, especially when claiming rights under SARFAESI, and that High Court's intervention in such cases is limited.
Tenants must establish valid, registered tenancy agreements to protect their possession against secured creditors under the SARFAESI Act.
(1) If a tenancy under law comes into existence after creation of a mortgage but prior to issuance of a notice under Section 13(2) of SARFAESI Act, it has to satisfy conditions of Section 65A of Tran....
A Civil Court's order affecting possession of secured assets is invalid if the secured creditor is not a party, infringing Section 34 of the SARFAESI Act.
The main legal point established in the judgment is that the existence of a valid tenancy can affect the rights of the secured creditor under SARFAESI Act, emphasizing the need for due diligence by b....
Tenancy rights created after a mortgage are invalid if they violate statutory provisions, and tenants cannot claim protection under the Rent Control Act in such cases.
MAIN POINTSSection 13(13) of the SARFAESI Act, 2002 will override section 65A of the Transfer of Property Act, 1882.Therefore unless a lease is validly determined in terms of section 111, possession ....
Point of Law : Tenant would not be entitled to possession of the secured asset for more than the period prescribed under Section 107 of the Transfer of Property Act, 1882 which period evidently has e....
The SARFAESI Act's provisions on eviction take precedence over tenant protections under Rent Control Law when no valid tenancy exists.
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