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Crl.A. @ SLP(Crl.) No. 8060 of 2015 Etc.Etc.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL/CIVIL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 52 OF 2016
(Arising out of SLP (Crl.) No.8060 of 2015)
VISHAL N. KALSARIA
BANK OF INDIA & ORS.
APPELLANT
Vs.
RESPONDENTS
with
CRIMINAL APPEAL NO. 53 OF 2016
(Arising out of SLP(Crl) No. 8064 of 2015)
CRIMINAL APPEAL NO. 54 OF 2016
(Arising out of SLP(Crl) No. 8063 of 2015)
CRIMINAL APPEAL NO. 55 OF 2016
(Arising out of SLP(Crl) No. 8062 of 2015)
CRIMINAL APPEAL NO. 56 OF 2016
(Arising out of SLP(Crl) No. 8066 of 2015)
CRIMINAL APPEAL NO. 57 OF 2016
(Arising out of SLP(Crl) No. 8067 of 2015)
CRIMINAL APPEAL NO. 58 OF 2016
(Arising out of SLP(Crl) No. 8068 of 2015)
CRIMINAL APPEAL NO. 59 OF 2016
(Arising out of SLP(Crl) No. 8069 of 2015)
CIVIL APPEAL NOS. 414-415
OF 2016
(Arising out of SLP(C) Nos.13295-13296 of 2015)
CRIMINAL APPEAL NO. 753 OF 2014
CRIMINAL APPEAL NO. 754 OF 2014
CRIMINAL APPEAL NO. 62 OF 2016
(Arising out of SLP(Crl) No. 6944 of 2015)
CRIMINAL APPEAL NO. 63 OF 2016
(Arising out of SLP (Crl) No. 6945 of 2015)
CIVIL APPEAL NO. 469 OF 2016
(Arising out of SLP(C) No. 25133 of 2015)
CRIMINAL APPEAL NO. 64 OF 2016
(Arising out of SLP(Crl) No. 6941 of 2015)
CIVIL APPEAL NO. 417 OF 2016
(Arising out of SLP(C) No. 28040 of 2015)
CIVIL APPEAL NO. 419 OF 2016
(Arising out of SLP(C) No. 28446 of 2015)
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V. GOPALA GOWDA, J.
The applications for impleadment are allowed.
2.
3.
which
requires
our
attention
and
consideration
is
Securitisation
and
Reconstruction
of
Financial
short,
the
SARFAESI
Act)
will
override
the
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Financial
Institutions,
is
also
the
essential
legal
4.
No.237
of
2010
by
the
learned
Magistrate,
5.
India
(Respondent
No.1)
(in
short
the
respondent
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asset.
On
12.03.2010,
the
respondent-Bank
days,
the
respondent-Bank
filed
an
application
the
mortgaged
possession
of
the
properties
Appellant.
which
The
are
in
learned
actual
Chief
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08.06.2011,
the
appellant
then
filed
an
order
dated
08.04.2011
passed
by
the
Chief
Govardhan
Reconstruction
Co.
Sondagar
Ltd.
v.
&
International
Ors.1.
Assets
Dismissing
the
(2014) 6 SCC 1
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Magistrate
08.06.2011
Mumbai
cannot
further
passed
be
by
said
held
the
to
that
Small
be
the
Causes
binding
order
Court,
upon
the
We
have
heard
the
learned
counsel
for
both
the
parties.
8.
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9.
The
Maharashtra
Rent
Control
Act,
1999,
which
and
the
landlord-tenant
relationship.
The
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amount
due
to
the
Banks
and
Financial
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Crl.A. @ SLP(Crl.) No. 8060 of 2015 Etc.Etc.
SARFAESI
Constitution
Act
of India
enacted
under
thus, seeks
List
of
to regulate
the
asset
situation
facing
the
court
in
that
case
was
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to
such
borrowed
amount
by
the
by
the
landlords/debtors,
the
banks
made
Chief
Metropolitan
Magistrate,
praying
that
the
with the
provisions of
the SARFAESI
Act.
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11
decision
Sondagar
respect
(supra),
of
protected
relevant
of
the
in
this
to
Court
contend
mortgaged
in
Harshad
that
prior
property
terms
of
the
paragraphs
of
the
Rent
to
tenancy
the
Control
decision
Govardhan
are
Bank
Act.
quoted
in
is
The
as
under:
25. The opening words of sub-section (1) of
Section 14 of the SARFAESI Act also provides
that if any of the secured asset is required
to be sold or transferred by the secured
creditor under the provisions of the Act, the
secured creditor may take the assistance of
the Chief Metropolitan Magistrate or the
District Magistrate. Where, therefore, such a
request is made by the secured creditor and
the Chief Metropolitan Magistrate or the
District Magistrate finds that the secured
asset is in possession of a lessee but the
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landlord
and
the
tenant
is
still
created
due
to
The
learned
senior
counsel
further
places
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15
possession.
When lease is a transfer of a right to enjoy
the property and such transfer can be made
expressly or by implication, the mere fact
that an unregistered instrument came into
existence would not stand in the way of the
court to determine whether there was in fact a
lease otherwise than through such deed.
(emphasis laid by this Court)
14.
virtue
of
payment
of
rent,
the
relationship
of
Govardhan
Sondagar
(supra),
if
person
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16
by
delivery
of
possession,
then
such
tenant
needs
to
be
protected.
It
is
further
contends
that
the
pith
and
substance
of
the
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Act
needs
to
be
appreciated.
Proper
the
larger
interest
of
the
nation.
The
learned
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18
for
the
recovery
of
the
secured
asset
of
the
Vikas
Singh,
the
learned
senior
counsel
2015
contends
that
the
SARFAESI
Act
cannot
be
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they
are
modified
or
reversed
by
appellate authorities; and the other
principle is that no one should be made
to face the same kind of litigation
twice over, because such a process would
be contrary to considerations of fair
play and justice."
20.
Banks
arguments
in
the
advanced
by
connected
the
appeals
aforesaid
adopted
learned
the
senior
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21
appeals
have
not
been
able
to
produce
sufficient
of
the
properties
in
question
in
the
22.
The
SARFAESI
Act,
which
came
into
force
from
to
debtors
recover
and
their
their
security
collateral
interest
security
from
the
assets
as
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23
of
Sections
13(2)
and
13(4)
of
the
Act,
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laudable
object
with
another
laudable
object,
in
the
case
of
Miss
Santosh
Mehta
v.
Om
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preamble
of
the
Rent
Control
Act
reads
as
under:
An Act to unify, consolidate and amend the
law relating to the control of rent and
repairs of certain premises and of eviction
and for encouraging the construction of new
houses by assuring a fair return on the
investment by landlords and to provide for
the matters connected with the purposes
aforesaid
It becomes clear from a perusal of the preamble of the
Act that the ultimate object behind the enactment of
this legislation is to control and regulate the rate of
rent so that unnecessary hardship is not caused to the
tenant, and also to provide protection to the tenants
against arbitrary and unreasonable evictions from the
possession
tenants
of
the
against
property.
unjust
The
evictions
protection
becomes
of
even
the
more
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26
possession
of
the
tenanted
premises
from
tenant.
24. When
we
backdrop
understand
of
the
legislations,
the
the
factual
objectives
controversy
of
in
matrix
the
the
in
the
above
two
instant
case
on
the
other.
The
Rent
Control
Act
being
and
the
Rent
Control
Act
operate
in
completely
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default
on
it.
Conversely,
landlord
loan,
the
unsuspecting
maximum
tenant,
brunt
who
will
would
be
be
borne
evicted
by
the
from
the
provisions
of
the
SARFAESI
Act.
Under
no
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28
along
with the
possession of
their properties
which
is
Transfer
well
of
settled.
Property
While
Act,
Section
1882
does
106
of
the
provide
for
registered
if
it
is
reduced
into
writing.
The
rights
landlord-tenant
and
liabilities
relationship
in
and
the
if
nature
regular
of
rent
a
is
being paid and accepted, then the mere factum of nonregistration of deed will not make the lease itself
nugatory. If no written lease deed exists, then such
tenants are required to prove that they have been in
occupation of the premises as tenants by producing such
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of
Section
55(2)
of
the
special
law
in
the
be
permitted
to
exploit
the
fact
of
non
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has
been
misinterpreted
to
create
this
judgment
understand
and
the
true
used,
without
purport
of
any
the
attempt
judgment
to
in
its
entirety.
27. It is a well settled position of law that a word or
sentence
cannot
be
picked
up
from
judgment
to
Bench
of
this
Court
in
the
case
of
H.H.
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(1971) 1 SCC 85
(1996) 6 SCC 44
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32
logically
follows
from
the
various
observations made in the judgment. Every
judgment must be read as applicable to the
particular facts proved, or assumed to be
proved,
since
the
generality
of
the
expressions which may be found there is not
intended to be exposition of the whole law,
but governed and qualified by the particular
facts of the case in which such expressions
are to be found. It would, therefore, be not
profitable to extract a sentence here and
there from the judgment and to build upon it
because the essence of the decision is its
ratio and not every observation found therein.
The enunciation of the reason or principle on
which a question before a court has been
decided is alone binding as a precedent. The
concrete decision alone is binding between the
parties to it, but it is the abstract ratio
decidendi, ascertained on a consideration of
the judgment in relation to the subject matter
of the decision, which alone has the force of
law and which, when it is clear what it was,
is binding. It is only the principle laid down
in the judgment that is binding law under
Article 141 of the Constitution. A deliberate
judicial decision arrived at after hearing an
argument on a question which arises in the
case or is put in issue may constitute a
precedent, no matter for what reason, and the
precedent by long recognition may mature into
rule of stare decisis. It is the rule
deductible from the application of law to the
facts and circumstances of the case which
constitutes its ratio decidendi.
10. Therefore, in order to understand and
appreciate the binding force of a decision it
is always necessary to see what were the facts
in the case in which the decision was given
and what was the point which had to be
decided. No judgment can be read as if it is a
statute. A word or a clause or a sentence in
the judgment cannot be regarded as a full
exposition of law. Law cannot afford to be
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in
the
tenanted
as collateral
premises
which
securities for
have
loans on
been
which
taken
this
view
in
the
case
of
Harshad
created,
tenant
can
be
evicted
only
after
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34
the
tenants
under
the
Rent
Control
Act.
The
(2009) 4 SCC 94
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XXX
XXX
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as
submitted
by
the
learned
senior
counsel
under
Article
246
(2)
of
the
Constitution
of
(1994) 3 SCC 1
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38
become
secured
asset
of
the
Bank
after
the
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39
while
enacting
the
SARFAESI
Act
and
accepted
by
this
Court
as
the
same
is
wholly
untenable in law.
33.
We
are
unable
to
agree
with
the
contentions
rent
either
Magistrate/Magistrate
before
Court
the
or
Chief
with
Metropolitan
the
concerned
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40
be
adjusted
debtors/landlords.
All
towards
the
pending
debts
of
the
applications
are
disposed of.
J.
[V. GOPALA GOWDA]
J.
[AMITAVA ROY]
New Delhi,
January 20,2016
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