Tenant property under auction
Arjun Jaganathan
(Querist) 10 February 2012
This query is : Resolved
My client is carrying on restaurant in a prime locality. The landlord of the particular building has mortgaged the property has availed a loan. He failed repay the bank and the property is about to get auctioned.
1.How do i protect my client who has taken the building for rent.Can he file a suite in the civil court so that he is prevented from being vacated even after the auction?
2. Should he get a stay for the auction.?
ajay sethi
(Expert) 10 February 2012
he should bid in the auction and purchase the property .
in any case in auction it would be disclosed that tenanted property is being sold . how long you have been a tenant ?
Arjun Jaganathan
(Querist) 10 February 2012
My client has been a tenant since 1994 (Almost 18 yrs). He doesn't want to vacate the place. Since it is a prime locality he is not in a position to afford such a huge amt to participate in the auction.
V R SHROFF
(Expert) 10 February 2012
OK, Anyone purchase the property is with your right of tenancy. So why Worry??
no one can vacate you.
V R SHROFF
(Expert) 10 February 2012
ARJUN: YOU ARE A STUDENT,
HOW CAN A RESTAURANT WALLA YOUR CLIENT??
Arjun Jaganathan
(Querist) 10 February 2012
Am sorry sir, I haven't changed my status. Its been 2 yrs since have completed my degree..
Its actually a well known restaurant, just because it is on a prime locality its flourishing with business . I have referred the Rent control Act and the SARFAESI Act. With my reference i guess he cannot be protected if the one who takes the auction asks him to vacate. The only thing is he has to give him atleast 3 months notice to vacate.
Advocate M.Bhadra
(Expert) 10 February 2012
As per provision of sec.34 of the SARFESAI Act Civil Court have no jurisdiction to try an entertain the matters under SARFEASI Act.Your client should file a case in DRT under Sec.17(1) of the said Act being an aggrieved party within 45 days after servicing notice under 13(4) of the said Act.Secured premises under the possession of bonafide tenant,tenant cannot be thrown out but secured creditors Bank can only take symbolic possession of the premises.(Hutchison Essar South Ltd.Vs. U.B.I. AIR 2008 KAR 14).
