In Brief
The Supreme Court upheld an order of the Gujarat High Court protecting a company in liquidation from eviction for non-payment of rent. The Court held that a landlord seeking eviction for non-payment of rent must first serve a formal notice of demand as required by the Bombay Rent Act, 1947. Since no such notice was issued, and the secured creditor (bank) was ready to pay all arrears, the tenant retained statutory protection. The Court also rejected claims that unauthorized assignment or six-year non-use grounds for eviction, noting that the company retained its legal existence and contractual obligations during liquidation. The appeals were dismissed except for certain cases remitted for reconsideration based on specific lease deed provisions.
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