For respondents ... Mr.K.J.Parthasarathy for R.2. Mr.TM.Pappaiah, Special Government Pleader for R.R.3 and 4. C O M M O N O R D E R (Order of the Court was made by M.Govindaraj,J) Writ petitioners are the tenants under the fifth respondent. Fifth respondent and her family members had borrowed a huge amount from the second respondent/Sundaram BNP Paribas Home Finance Ltd, Chennai. The second respondent has initiated SARFAESI proceedings against the fifth respondent and her family members. Pursuant to the SARFAESI proceeding, the fourth respondent was requested to take possession, under Section 14 of the SARFAESI Act, of the premises. The action under Section 14 of the Act was resisted by the petitioners herein, on the ground that they are statutory tenants and they are protected by the Rent Control Act and the SARFAESI Act has no application. They have also contended that the second respondent is not a financial Institution, notified under the Reserve Bank of India Regulations. The judgment reported in 2011 (2) CTC - 474, lease under Section 31 E, in which no security has been created would not be covered under the SARFAESI Act. Accordingly, in view of the subsisting lease between the writ petitioners and the borrowers, the provisions of SARFAESI Act is not applicable to the cases on hand.
