Bona fide tenancy under SARFAESI requires real proof; a collusive or afterthought claim will not defeat secured creditor action.

A tenancy asserted to resist SARFAESI enforcement must be shown by contemporaneous and credible proof to be genuine, bona fide, and enforceable against the secured creditor. On the facts, the petitioners failed to establish a lawful continuing tenancy: the supporting documents were limited, the consent decree was treated as collusive, and the claim appeared to be an afterthought inconsistent with their own version of payment of rent and outgoings. The protection available to bona fide tenants was therefore held inapplicable, and the orders permitting possession under the SARFAESI Act were upheld. The writ petition and request for interim protection were rejected.

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Issues: Whether the petitioners established a genuine and bona fide tenancy, pre-existing and enforceable against the secured creditor, so as to prevent action under the SARFAESI Act and invalidate the orders passed by the Chief Metropolitan Magistrate.

Analysis: The petitioners relied on a purported tenancy, a subsequent consent decree and limited documentary material, but the Court found that these materials did not satisfactorily prove a lawful and continuing tenancy. The consent decree in the Small Causes Court was treated as the product of collusion and was inconsistent with the petitioners' own assertion of prior payment of rent and outgoings. The Court held that the tenancy claim was raised as an afterthought and was not supported by contemporaneous proof of creation or continuance. The protection recognised in cases concerning bona fide tenants was held inapplicable on these facts, since the claim here was not shown to be genuine.

Conclusion: The petitioners failed to establish a protected tenancy and the impugned orders permitting possession under the SARFAESI Act were upheld.

Final Conclusion: The writ petition was rejected, and the request for continuation of interim protection was also refused.

Ratio Decidendi: A tenancy set up in resistance to SARFAESI measures must be affirmatively proved as genuine and bona fide; a doubtful, collusive, or afterthought claim will not bar enforcement action under the Act.

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