K.Umashankar S/o.S.Kesavan, & Ors. vs State Bank of India rep. by its Authorized Officer, & Ors.

These petitions challenge the orders passed by learned Chief Metropolitan Magistrate, Allikulam, Chennai, in Crl.M.P.Nos.6554, 6547, 6545,

6546, 6544, 6555, 6552, 6465, 6469, 6437, 6438 and 6553 of 2015 in Crl.M.P.No.4156 of 2015 on 17.09.2016, u/s.14 of the Securitisation

and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

It is the contention of petitioners that their right of tenancy stands adversely affected by the orders under challenge.

Learned counsel for first respondent brings to notice introduction of sub-section 4-A in Section 17 of Securitisation and Reconstruction of

Financial Assets and Enforcement of Security Interest Act, 2002. Such section reads as follows:

(4A) Where -

(i) any person, in an application under sub-section (1), claims any tenancy or leasehold rights upon the secured asset, the Debt

Recovery Tribunal, after examining the facts of the case and evidence produced by the parties in relation to such claims shall, for the

purposes of enforcement of security interest, have the jurisdiction to examine whether lease or tenancy. -

(a) has expired or stood determined; or

(b) is contrary to section 65A of the Transfer of Property Act, 1882 or

(c) is contrary to terms of mortgage; or

(d) is created after the issuance of notice of default and demand by the Bank under sub-section (2) of section 13 of the Act; and

(ii) the Debt Recovery Tribunal is satisfied that tenancy right or leasehold rights claimed in secured asset falls under the sub-clause (a)

or sub-clause (b) or sub-clause (c) or sub-clause (d) of clause (i), then notwithstanding anything to the contrary contained in any

other law for the time being in force, the Debt Recovery Tribunal may pass such order as it deems fit in accordance with the

provisions of this Act.

These revisions are disposed of granting liberty to petitioners to move the Debt Recovery Tribunal u/s.17(4A) of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, within a period of one month from the date of receipt of this

order. The orders passed by learned Chief Metropolitan Magistrate, Allikulam, Chennai, in Crl.M.P.Nos.6554, 6547, 6545, 6546, 6544, 6555,

6552, 6465, 6469, 6437, 6438 and 6553 of 2015 in Crl.M.P.No.4156 of 2015 on 17.09.2016, u/s.14 of the Securitisation and Reconstruction

of Financial Assets and Enforcement of Security Interest Act, 2002, u/s.14 of the Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002, which are under challenge herein, shall be kept in abeyance pending decision of the Debt Recovery

Tribunal on the appeals preferred by petitioners before it. The Debt Recovery Tribunal may dispose of the appeals as expeditiously as possible.

Connected miscellaneous petitions are closed.