AIR 2007 MADRAS 148 ::2007 (4) AKAR (NOC) 431 (MAD) ::2007 (4) AIR Kar R 431 ::(2007) 3 BankJ 281 ::(2007) 80 CorLA 371 ::2007 (3) Civ LJ 830 ::(2007) 2 CTC 193 (MAD) ::2007 (2) CTC 193 ::2007 (2) MadLJ815

Madras High Court

Hon'ble Judge(s): A. P. Shah , C.J. AND K. Chandru , J

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (54 of 2002) , S.13(4)— Transfer of Property Act (4 of 1882) , S.65A— Right to take possession of secured asset from borrower or third party - Tenant can be dispossessed in pursuance of recovery proceedings against borrower - Provisions of S. 13(4) of SARFAESI Act override local laws viz. - Tamil Nadu Buildings (Lease and Rent Control) Act - Tenancy created by mortgagor after the mortgage in contravention of S.65-A of T. P. Act not binding on the bank/financial institutions. The bank/FI is entitled to take actual possession of the secured assets from the borrower or from any other person in terms of S. 13(4) of the SARFAESI Act. Any transfer of secured assets after taking possession of the same by the bank/FI shall vest in the transferee all rights in relation to the secured assets as if the transfer has been made by the owner of such secured assets. Any party aggrieved by such dispossession will have to take recourse to by approaching the DRT u/S. 17(4) of the SARFAESI Act. If the party is dispossessed, not in accordance with the provisions of the Act, then the DRT is entitled to put the clock back by restoring the status quo ante. By virtue of S. 17(4) read with S. 35 of the SARFAESI Act, if in a given case the measures undertaken by the secured creditor u/S. 13(....