IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
DHIRAJ SINGH THAKUR, CJ, R RAGHUNANDAN RAO
Balaji Cauvery silk, Arts And Crafts Emporium – Appellant
Versus
Union of India, Rep. by its secretary, Ministry of Finance – Respondent
JUDGMENT :
DHIRAJ SINGH THAKUR, CJ.
1. The petitioner claims that he was in possession of the property in question, by virtue of a registered Rent Deed, dated 22.02.2016, wherein he Was conducting his business. It is stated that after tenancy rigtlts were created in favour of the petitioner, by the owner of the property, a loan was obtained by the owner, who subsequently mortgaged the property in question with the financial institution - respondent No.2 herein.
2. The petitioner claims that while he was in possession, the secured creditor approached the Chief Judicial Magistrate-Cum-Principal Civil Judge, (Senior Division), Chittoor, in terms of the provisions of section 14 of the SARFAESI Act, 2002 for Obtaining Physical possession of the Property in question. It is stated that the learned chief Judicial Magjstrate ordered the appointment of an Advocate commissioner authorising him to take physical possession of the property in question.
3. The case of the petitioner is that respondent No.2 did not in the application reflect that the petitioner was in possession and running business from the premises in question, based upon a validly created tenancy in favour of the petitioner, and h
A secured creditor must acknowledge existing tenancy rights when seeking possession of mortgaged property under the SARFAESI Act.
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.
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 ....
(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....
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 be included in eviction proceedings under the SARFAESI Act; lacking notice renders eviction efforts arbitrary, yet alternative statutory remedies limit the High Court's jurisdiction.
Tenants must establish valid, registered tenancy agreements to protect their possession against secured creditors under 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....
Point of law : An aggrieved person other than the principal borrower can seek adjudication of his rights, more particularly a tenant can seek redressal of his grievance as to whether there was a vali....
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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