SANJIVKUMAR SURAJPRAKASH AGGARWAL v. STATE BANK OF INDIA

Supreme Court of India · 30 Jun 2016
Kurian Joseph; Rohinton Fali Nariman
CIVIL APPEAL NO. 5401 OF 2016
civil appeal_allowed Significant

AI Summary

The Supreme Court directed a Magistrate to conduct a proper inquiry into the genuineness of a tenancy under Section 14 of the SARFAESI Act, holding that prior cursory consideration was insufficient adjudication.

Full Text
Translation output
Page 1
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
I.A. 2 OF 2016
IN
CIVIL APPEAL NO. 5401 OF 2016
[@ SPECIAL LEAVE PETITION (C) NO. 19616 OF 2015]
SANJIVKUMAR SURAJPRAKASH AGGARWAL Appellant(s)
VERSUS
STATE BANK OF INDIA AND ORS. Respondent(s)
JUDGMENT
KURIAN, J.

1. Leave granted.

2. The dispute in this appeal is whether the tenancy created in favour of the appellant is a sham one or not. It is not in dispute that there is no adjudication on this aspect. Under Section 14 of the SARAFAESI Act, this aspect can be adjudicated before the Chief Metropolitan Magistrate, Esplanade Court, Mumbai.

3. Mr. Amarendra Sharan, learned senior counsel appearing for the Bank, submits that the Magistrate, in fact, had gone into the aspect while deciding the Invervention Application.

4. We do not think that the same would be sufficient in adjudicating the issue regarding tenancy. In our opinion, an inquiry, with the participation of the appellant, would be in the fitness and fairness of Page 2 the adjudication. Therefore, this appeal is disposed of, directing the Magistrate to conduct an inquiry with regard to the genuineness of the tenancy created by the third respondent with the appellant. The parties shall appear before the Magistrate on 01.08.2016 and the Magistrate will conduct the required inquiry and complete the proceedings within one month thereafter.

5. Needless to say, the parties shall extend their cooperation, without praying for unnecessary adjournments, so that the matter can be decided within the stipulated time.

6. We make it clear that the pendency of the inquiry before the Magistrate shall not stand in the way of the Bank proceeding against the landlord in accordance with law.

7. I. A. No. 2 for directions is disposed of. No costs ........................ J. [ KURIAN JOSEPH ] ....................... J. [ ROHINTON FALI NARIMAN ] New Delhi; JUNE 30, 2016.