SARFAESI Act cannot override Rent Control Laws

Tenants cannot be evicted using provisions of SARFAESI Act: Supreme Court

SARFAESI Act cannot override Rent Control Laws; Tenants cannot be evicted using provisions of SARFAESI Act: Supreme Court

A tenant cannot be arbitrarily evicted by using the provisions of the SARFAESI Act as that would amount to stultifying the statutory rights of protection given to the tenant. A non-obstante clause (Section 35 of the SARFAESI Act) cannot be used to bulldoze the statutory rights vested on the tenants under the Rent Control Act, the Court said.

In a significant ruling, the Supreme Court of India has held that the provisions of the SARFAESI Act cannot override the provisions of the Rent Control Act. Apex Court Bench comprising of Justices V. Gopala Gowda and Amitava Roy, in Vishal N. Kalsaria vs. Bank of India, said that non-obstante clause as in section 35 of the SARFAESI Act cannot be used to bulldoze the statutory rights vested on the tenants under the Rent Control Act. Context The Appellants were the tenants occupying the property mortgaged in the Bank.

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