Vishal N. Kalsaria Vs. Bank of India & Ors.
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Head Note
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Section 13 (2) , Section 14 , Section 35
Maharashtra Rent Control Act, 1999 - SARFAESI - Tenanted Premises - Secured creditor -Tenanted premises - Taking of possession - On default of payment of the borrowed amount by the landlords/debtors, the banks made application under Section 14(1) of the SARFAESI Act to the Chief Metropolitan Magistrate, praying that the possession of the premises be handed over to them in accordance with the provisions of the SARFAESI Act - Held 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 - A non obstante clause (Section 35 of the SARFAESI Act) 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' as appearing in Section 35 of the SARFAESI Act 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. Interpreting the non obstante clause of the SARFAESI Act - Impugned judgments and orders passed by the High Court/ Chief Metropolitan Magistrate liable to be set aside - Further directed that the amounts which are in deposit pursuant to the conditional interim order of the Court towards rent either before the Chief Metropolitan Magistrate/Magistrate Court or with the concerned Banks, shall be adjusted by the concerned Banks towards the debt due from the debtors/landlords in respect of the appellants in these appeals - Enhanced rent by way of conditional interim order shall be continued to be paid to the respective Banks, which amount shall also be adjusted towards debts of the debtors/landlords.
Topic(s)-SARFAESI - Tenanted Premises - Tenant can be evicted under rent laws only