In Brief
Hemraj Salian, claiming to be a tenant of a mortgaged property, sought protection against HDFC Bank's action to take possession under the SARFAESI Act. The Supreme Court held that a tenant in sufferance cannot claim protection under the Rent Control Act against a secured creditor's proceedings. A tenancy for more than one year must be registered; oral or unregistered tenancies do not prevent the bank's takeover. The bank's possession cannot be blocked merely by claiming tenancy without formal registration. Further, the borrower must seek the creditor's consent to create or renew any tenancy after notice is issued. The appeal was dismissed."
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