In case of bogus and collusive tenancy, the action taken by CMM u/s 14 of SARFAESI Act, 2002 to take over the possession of the property cannot be held to be erroneous – National Laminate Corporation Vs. The Cosmos Co-operative Bank Ltd. & Anr. – DRAT Mumbai

DRAT held that there is serious doubt as to the bona fides of the tenancy as there is a lack of sufficient evidence to establish the tenancy of the Appellant. The action taken by the C.M.M. to take over the possession of the property cannot be held to be erroneous. What is protected by the SARFAESI Act is a valid and legal tenancy. The Ld. P.O. has discussed the evidence and materials placed on record at great length to conclude that the tenancy is bogus and collusive.

In case of bogus and collusive tenancy, the action taken by CMM u/s 14 of SARFAESI Act, 2002 to take over the possession of the property cannot be held to be erroneous – National Laminate Corporation Vs. The Cosmos Co-operative Bank Ltd. & Anr. – DRAT Mumbai Read Post »