Proved tenancy requirements in SARFAESI proceedings: oral, unregistered claims cannot defeat secured creditor possession rights.

In SARFAESI proceedings, a tenant can resist delivery of possession of a secured asset only if the tenancy is proved to be lawful and bona fide. A lease created before mortgage may be protected if valid and continuing until determined under the Transfer of Property Act, while a tenancy created after mortgage must comply with Section 65A, and a tenancy for more than one year requires a registered instrument under Section 107. On the stated facts, the alleged oral and unregistered tenancy was not proved by reliable evidence, its date and genuineness were doubtful, and it did not defeat the creditor's right to take possession.

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Issues: Whether a tenant claiming under an oral and unregistered tenancy could resist delivery of possession of a secured asset in SARFAESI proceedings, and whether the tenant had established a bona fide tenancy entitled to protection under rent law.

Analysis: The secured creditor's measures under the SARFAESI Act operate through the statutory scheme in Sections 13, 14 and 17, subject to the overriding effect of Section 35. A lease created prior to mortgage may protect possession if it is a valid tenancy and continues until determined in accordance with Section 111 of the Transfer of Property Act, 1882. A tenancy created after mortgage must satisfy Section 65A of the Transfer of Property Act, 1882, and a claim to possession for more than one year requires a registered instrument under Section 107 of the Transfer of Property Act, 1882. On the facts, the alleged tenancy was unsupported by a registered document, the date and genuineness of tenancy were not established with reliable evidence, and the materials showed the claim to be doubtful and inconsistent with the bank's records. The tenant therefore failed to prove a lawful and bona fide tenancy capable of defeating the creditor's right to take possession.

Conclusion: The tenant was not entitled to resist possession and the rejection of the stay application was ? No, we must keep legal English. The tenant was not entitled to protection against SARFAESI possession and the decision was against the appellant.

Ratio Decidendi: In SARFAESI proceedings, only a proved valid tenancy that existed before mortgage or one lawfully created after mortgage can defeat possession, and an unregistered or unproved oral tenancy cannot confer protection beyond the period permitted by the Transfer of Property Act, 1882.

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