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Supreme Court of India 2019-10-21 dismissed

Stressed Assests Stabilization Fund vs West Bengal Small Ind. Development Corporation Ltd. and Anr

Bench: 3 — <UNKNOWN>

In Brief

SASF appealed seeking possession of leasehold premises previously held by Wellman, a company in liquidation. SASF claimed rights as mortgagee of the lessee company. The Supreme Court held that a mortgagee cannot exercise rights greater than those held by the mortgagor/lessee under the original lease deed. Since the lessee's rights were restricted by the lease terms, SASF could not claim broader rights. The appeal was dismissed, establishing that mortgagees are bound by the limitations inherent in the mortgagor's original position.

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Property Law Lease and Tenancy Corporate Law Mortgages Liquidation

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