Partly allowed

Sayyad Riyaz Hussain v. Rbl Bank Ltd.

DRAT27 Sept 2023IA/655/2023

Case brief

AI extract

What is this about?

Appellant landlord tenant challenged DR T Nagpur order denying interim possession protection under SARFAESI Act. Tribunal set aside lower decision and remanded for fresh consideration after granting two week interim stay from dispossession pending merits.

What did the court decide?

Interim protection against dispossession granted for two weeks; appeal remanded to DRT Nagpur for fresh consideration of subsection 4A of section 17 application.

Sayyad Riyaz Hussain versus Rbl Bank Ltd. — Arbitration | DRAT (2023)

¶1

BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson

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Misc. Appeal No. 118/2023

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Between

¶4

Sayyed Riyaz Hussain V/s.

RBL Bank Ltd. & Ors.

… Appellant/s

…Respondent/s

Mr Radhe Agrawal i/b M/s RADLAW Associates, Advocate for Appellant.

¶9

The matter is taken up for hearing by way of a praecipe filed on 21.09.2023 by the Appellants seeking urgent relief.

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The Appellant claims to be a tenant in possession of the secured asset which is being proceeded against by the Respondent bank armed with an order of dispossession from the Chief Judicial Magistrate, Nagpur (CJM) under Sec. 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’, for short).

¶11

The Appellant approached the Debts Recovery Tribunal, Nagpur (D.R.T.) by filing a Securitisation Application (S.A.) No. 221 of 2023 seeking protection of his right to remain in possession as a tenant under Sec. 17(4A) of the SARFAESI Act. It is contended that the Appellant is holding the property by virtue of a registered lease deed executed on 01.01.2023 and the demand notice issued to the borrowers by the bank only on 31.01.2023, consequent to the creation of the lease. The Appellant had pressed for an interim relief to stall the

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Sarfaesi measures initiated. Vide order dated 14.09.2023, the Ld. Presiding Officer (in charge) refused to grant any favourable order holding that it was nothing but a connivance between the borrower and the so-called tenant and therefore, no protection was granted.

¶14

When a person claiming to be a tenant approaches the D.R.T. with an application under Sec. 17, it is incumbent upon the Tribunal to examine whether the conditions as stipulated under Sub-Sec.4A of Sec. 17 have been complied with. The Ld. Presiding has refused to grant protection by a very cryptic order which does not consider the scope of Sub-Sec.4A of Sec. 17 of the SARFAESI Act. Prima facie, the order does not appear to be sustainable and is, therefore, set aside and the appeal is remanded to the D.R.T., Nagpur for fresh consideration of the application for interim protection. The application shall be heard afresh and disposed of in accordance with law after considering the tenancy set up by the Appellant in terms of the requirement under Sub-Sec. 4A of Sec. 17 of the SARFAESI Act. With these observations, the misc. appeal is disposed of.

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Since the Appellant is facing a threat of dispossession which is scheduled to take place immediately, there shall be an interim protection granted to the Appellant for a period of two weeks, by which time, the application shall be heard on merits by the D.R.T.

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Sd/Chairperson

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mks-09

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Sayyad Riyaz Hussain v. Rbl Bank Ltd.

Case brief

What is this about?

What did the court decide?

Sayyad Riyaz Hussain v. Rbl Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Statutes considered

Parties & counsel

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Case details

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