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IN THE HIGH COURT OF KERALA AT ERNAKULAM
JUSTICE GOPINATH P., J
UTHAMAN K.n.s/o. NARAYANAN K.V. – Appellant
Versus
SOUTH INDIAN BANK LTD. – Respondent
JUDGMENT :
1. The petitioner has approached this Court being aggrieved by the proceedings initiated by the respondent Bank to take physical possession of a shop room in which the petitioner is conducting a barber shop. The shop room in question is situated on property belonging to the 3rd respondent, who is indebted to the respondent Bank. It is the case of the petitioner that the petitioner cannot be evicted by resort to proceedings under the SARFAESI Act and if at all he has to be evicted, proceedings will have to be initiated under the Rent Control Law.
2. The learned counsel appearing for the petitioner submits that the 3rd respondent had purchased the building at a time when the father of the petitioner was a tenant in the building. It is submitted that this fact is even mentioned in the document of title of the 3rd respondent. It is submitted that the Bank was thus aware of the fact that there were tenants and having undertaken the risk of accepting the mortgage of a building / property with tenants, the Bank cannot be heard to contend that they can evict persons in occupation without having to resort to proceedings under the Rent Control Act. The learned counsel appearing for
The SARFAESI Act's provisions on eviction take precedence over tenant protections under Rent Control Law when no valid tenancy exists.
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.
(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....
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....
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....
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 ....
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