In Brief
The Supreme Court considered an interim application in a case concerning whether a tenancy arrangement was genuine or a sham transaction used to circumvent the Bank's enforcement rights. The Court held that under Section 14 of the SARFAESI Act, 2002, the genuineness of a tenancy must be properly adjudicated by the Chief Metropolitan Magistrate through a formal inquiry with participation of all interested parties. The Court ordered the Magistrate to conduct such an inquiry within one month, while clarifying that the Bank could continue proceedings against the landlord independently during this period.
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