INDIAN BANK Vs. M/S NIPPON ENTERPRISES SOUTH & ORS

Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 5610-5611 of 2011, Judgment Date: Feb 17, 2016

                                                              NON-REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL NOS. 5610-5611 OF 2011

INDIAN BANK                                                     Appellant(s)

                                VERSUS

M/S NIPPON ENTERPRISES SOUTH & ORS.                            Respondent(s)

                               J U D G M E N T

KURIAN, J.

1.    The short issue  to  be  decided  in  these  appeals  is  whether  the
appellant, who has been successful in the SARFAESI proceedings  against  the
owner of the secured assets, automatically can have the same say as  against
the tenant in the premises.
2.    That issue has been considered in the various Judgments of this  Court
and the latest one is in "Vishal N. Kalsaria Vs. Bank of India  &  Ors."  in
Crl. Appeal No. 52 of 2016 decided  on  20.01.2016,  reported  in  (2016)  1
SCALE 172 and at paragraph 30, this Court has observed as under :-
"It is a settled position of law that 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......."


3.    In view of the above, these appeals are dismissed.  However,  we  make
it clear that the dismissal of these appeals shall not stand in the  way  of
the appellant-Bank  taking  recourse  to  any  remedy   under  any  law  for
evicting the first respondent.
      No costs.
                                                   .......................J.
                                                           [ KURIAN JOSEPH ]


                                                   .......................J.
                                                   [ ROHINTON FALI NARIMAN ]

      New Delhi;
      February 17, 2016.