SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(SC) 744

SUPREME COURT OF INDIA
Sanjay Karol, Nongmeikapam Kotiswar Singh, JJ.
British Motor Car Company (1939) Ltd. – Appellant
Versus
M/S Hindustan Commercial Bank Ltd. Since Has Been Merged Into Punjab National Bank & Anr. – Respondents
Civil Appeal No. 5714 of 2012
Decided On : 09-07-2026

Advocates appeared:
For the Appellant(s) : Mr. Shyam Divan, Sr. Adv. Mr. Shyam Mehta,, Sr. Adv. Mr. Bhargava V. Desai, AOR Mrs. Manjula Gandhi, Adv. Mr. Shyam Sharma, Adv. Mr. Harsh Narwal, Adv. Mr. Sudipto Sircar, Adv. Mr. Shaishir Divatia, Adv. Mr. Rahul Dubey, Adv. Mr. Amar Kumar Yadav, Adv. Mr. S K Gandhi, Adv. Mr. Shivam Makkar, Adv.
For the Respondent(s): M/S. Mitter & Mitter Co., AOR

JUDGMENT :

SANJAY KAROL, J.

1. The present appeal arises out of the impugned judgment and order dated 12.03.2012 passed by the High Court of Delhi at New Delhi in CM (M) No.485 of 2001, whereby the High Court allowed the petition filed by the respondents herein and set aside the decree of eviction passed by the Rent Control Tribunal1[In RCA No.22/2000.].

2. Brief facts, shorn of unnecessary details, are as follows:

    2.1 The present appellant, British Motor Car Company Limited2[Hereinafter referred to as the ‘landlord’.], in 1947, let out an area of 2443.75 sq. ft. on the ground floor and 1150.25 sq. ft. on the mezzanine floor in the property known as Pratap Building N-Block, Connaught Circus, New Delhi3[Hereinafter referred to as the ‘tenanted premises’.], to Hindustan Commercial Bank4[‘HCB’ for short.] (Respondent No.1 herein) at a monthly rent of Rs.585/- per month, for non-residential purposes.

2.2 On 18.12.1986, the Government of India issued a Gazette Notification under Section 45(7) of the Banking Regulation Act, 19495[Hereinafter referred to as ‘BR Act’.], pursuant to which HCB was amalgamated with Punjab National Bank (Respondent No.2 herein)6[‘PNB’ for short.]. The Notification prescribed 19.12.1986 as the date on which the amalgamation Scheme, prepared by the Reserve Bank of India, in exercise of the powers conferred under Section 45(4) of the BR Act, would take effect. In light of such a scheme, all rights and liabilities of HCB stood vested with PNB, as a consequence whereof, the latter came into possession of the tenanted premises.

2.3 The appellant filed an Eviction Petition, being E-161/1987, seeking eviction of the respondents herein from the tenanted premises under Section 14(1)(b) r/w Section 14(1)(j) of the Delhi Rent Control Act 19587[Hereinafter referred to as ‘DRC Act’.]. The contention of the landlord was that HCB had sublet/assigned/parted with possession of the tenanted premises in favour of PNB without obtaining their written consent, hence PNB being an unauthorized sub-tenant is liable to be evicted u/s 14(1)(b) of the DRC Act.

2.4 The Additional Rent Controller, Delhi8[In E-161/87], vide judgment and order dated 03.11.1995, dismissed the eviction petition, observing as under:

“11. … Here in the case provisions of sub-section (8) of Section 45 of the Banking Regulation Act-1949 makes it clear that the scheme or any provisions thereof shall be binding on the Banking Company or, as the case may be, on the transferee bank and any other banking company concerned in the amalgamation and also on all the members, depositors and other creditors and employees of each of those companies and of the transferee bank and on any other person having any right or liabilities in relation to any those companies. (emphasis supplied). Thus it is clear that the scheme of amalgamation shall be binding on the petitioner since it falls within the category of any other person having any right or liability in relation to the transferor bank. The petitioner certainly has a right to sue and the transferor bank in respect of its obligation relating to the terms of tenancy, under the terms of the Act as well as general Civil Law. Thus, it falls within the category of any other person as contemplated by the aforesaid sub-section. Hence, there is no two opinion that the scheme of amalgamation is binding upon the petitioner. In these situations the petitioner is bound by the scheme, which is law providing for amalgamation of the two banking companies in public interest and is, therefore, protected under Article 31-A(l)(c) of the Constitution of India. The aforesaid scheme being the statutory one, is law and is binding on the petitioner, leaving no room for him to invoke the provision of Section 14(1)(b) of the Act. By the law, in the shape of the scheme of amalgamation referred above, the respondent no.1 has become a tenant under the petitioner.

12. … Herein the case the scheme was sanctioned by the Central Government when the same was placed

          Click Here to Read the rest of this document
          1
          2
          3
          4
          5
          6
          7
          8
          9
          10
          11
          SupremeToday Portrait Ad
          supreme today icon
          logo-black

          An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

          Please visit our Training & Support
          Center or Contact Us for assistance

          qr

          Scan Me!

          India’s Legal research and Law Firm App, Download now!

          For Daily Legal Updates, Join us on :

          whatsapp-icon telegram-icon
          whatsapp-icon Back to top