In Brief
SASF, an SPV holding mortgaged leasehold industrial property, sought to challenge the West Bengal Board's termination of a 99-year lease granted to Wellman Incandescent India Ltd, which had ceased manufacturing operations in breach of lease conditions. SASF, as successor to IDBI's mortgage rights, contended the forfeiture was harsh and caused public loss of Rs. 42 crores. The Supreme Court upheld the lessor's right to forfeit the lease, holding that a mortgagee cannot exercise rights superior to the mortgagor/lessee. Since the lessee itself did not challenge the forfeiture, SASF—as mortgagee—could not claim better rights. Appeal dismissed.
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