| Topics |
Headnote |
Judgement |
| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
SARFAESI Act — S 13(2) — Rent Control Act —‘Protected tenant’ under — treating as a lessee— Applying provisions of SARFAESI Act’— to override the provisions of the Rent Control Act— Preserving of the right of the ‘protected tenant’ in cases where the debtor-landlord secures a loan by offering the very same property as a security interest — Order of CMM to take possession of the secured assets — Upheld by high Court — Held, A tenant cannot be arbitrarily evicted by using the provisions of the SARFAESI Act— Judgments & orders passed by the High Court/Chief Metropolitan Magistrate set aside — Appeals allowed — Amounts deposited towards rent & enhanced rent ordered to be adjusted by the concerned Banks towards the debt due from the debtors/landlords — applications disposed of. (Para 30 & 34) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
SARFAESI Act — S 13(2) — Where any borrower, who is under a liability to a secured creditor under a security agreement— makes any default in repayment of secured debt or any instalment thereof— & his account in respect of such debt is classified by the secured creditor as non-performing asset— then, the secured creditor may require the borrower by notice in writing to discharge in full his liabilities to the secured creditor within sixty days from the date of notice failing which the secured creditor shall be entitled to exercise all or any of the rights under sub-section (4). (Para 22) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
SARFAESI Act — S 13(2) — In case the borrower fails to discharge his liability in full within the period specified in sub-section (2) — the secured creditor may take recourse to one or more of the following measures to recover his secured debt —(a) take possession of the secured assets of the borrower including the right to transfer by way of lease, assignment or sale for realising the secured asset. (Para 22) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
SARFAESI Act — S 35 — The provisions of this Act to override other laws — The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. (Para 22) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
Interpretation of Statutes — SARFAESI Act — vis-a-vis — Rent Control Act — Evicting a tenant with the aid of SARFAESI Act — Held, The Rent Control Act being a social welfare legislation, must be construed as such — A landlord cannot be permitted to do indirectly what he has been barred from doing under the Rent Control Act — more so when the two legislations, that is the SARFAESI Act and the Rent Control Act operate in completely different fields —The provisions of the SARFAESI Act cannot be used to override the provisions of the Rent Control Act. (Para 24) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
Interpretation of Statutes — SARFAESI Act — vis-a-vis — Rent Control Act — Keeping tenanted premises as a security interest & defaulting loan —Eviction of tenant — Held, under no circumstances can this be permitted— more so in view of the statutory protections to the tenants under the Rent Control Act — & also in respect of contractual tenants along with the possession of their properties which shall be obtained with due process of law. (Para 24) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
SARFAESI Act — tenancy deed — non registration of — Held, neither the landlord nor the banks can be permitted to exploit the fact of non registration of the tenancy deed against the tenant. (Para 25) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
SARFAESI Act — Rent Control Act — Evicting a tenant — Held, once tenancy is created, a tenant can be evicted only after following the due process of law— as prescribed under the provisions of the Rent Control Act— A tenant cannot be arbitrarily evicted by using the provisions of the SARFAESI Act— as that would amount to stultifying the statutory rights of protection given to the tenant. (Para 30) |
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| SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST (SARFAESI) ACT, 2002 |
Jurisprudence — Interpretation of Statute — SARFAESI Act — S 35 — Non obstante clause — Interpretation of — the clause cannot be used to bulldoze the statutory rights vested on the tenants under the Rent Control Act — Expression ‘any other law for the time being in force’ — Scope of — cannot mean to extend to each and every law enacted by the Central and State legislatures — It can only extend to the laws operating in the same field. (Para 30) |
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