The Supreme Court observed that a tenant in sufferance is not entitled to any protection of the Rent Act against SARFAESI proceedings.
A tenant whose term has expired but has not vacated is called a “tenant at sufferance.‟.
In appeal, the court noted that in Harshad Govardhan Sondagar v. International Asset Reconstruction Co. Ltd. , it was held that if the tenancy claim is for any term exceeding one year, the tenancy can be made only by a registered instrument. Referring to Bajarang Shyamsunder Agarwal v. Central Bank of India.
The bench of Justices S. Abdul Nazeer and Krishna Murari observed.
In the absence of a registered instrument, if the tenant only relies upon an unregistered instrument or an oral agreement accompanied by delivery of possession, the tenant is not entitled to possession of the secured asset for more than the period prescribed under the provisions of the Transfer of Property Act.