BOON REALTORS PRIVATE LIMITED Vs. JULIEN EDUCATIONAL TRUST

JUDGEMENT

(1.) The present appeal has been preferred against an order dated July 19, 2025 passed in Title Suit No.744 of 2025, by which the temporary injunction application of the plaintiff/respondent no.1 was disposed of by directing the defendants (the present appellant being defendant no. 3) to maintain status quo with regard to the nature, character, possession and alienation of the suit property till disposal of the suit.

(2.) Learned senior counsel appearing for the appellant submits that the plaintiff/respondent no.1 claims title and possession in respect of the suit property by dint of a purported tenancy agreement dated January 04, 2016 created in its favour by the original owners. However, prior thereto, the suit property was auction-sold to the appellant under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "the SARFAESI Act") in view of the borrowers/original owners? account having turned NPA (Non Performing Asset) and the said borrowers having failed to repay the loan of the defendant no.1/Bank. The plaintiff/respondent no.1 as well as the defendant no.3/appellant participated in the auction sale and the appellant came out successful. A sale certificate pursuant thereto was issued in favour of the appellant on June 30, 2021 and a formal sale deed executed on October 08, 2021. The account of the borrowers, being three private companies, namely Mehul Overseas Private Limited, Kundan Investment Private Limited and Prime Global Private Limited, had turned NPA on March 31, 2011. Notice under Sec. 13(2) of the SARFAESI Act was issued to the borrowers/original owners on May 13, 2011 and notice of possession under Sec. 13(4) of the said Act on July 18, 2011.

(3.) Thus, it is contended that the purported tenancy created in favour of the plaintiff/respondent no.1 by the borrowers subsequent to the notice under Sec. 13(2), was bad in law, being violative of the specific bar under Sec. 13(13) of the SARFAESI Act. Hence, the said tenancy was void ab initio and could not confer any right, title and interest on the plaintiff.