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NON-REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

I.A. 2 OF 2016 IN  

CIVIL APPEAL NO. 5401 OF 2016 [@ SPECIAL LEAVE PETITION (C) NO. 19616 OF 2015]

SANJIVKUMAR SURAJPRAKASH AGGARWAL             Appellant(s)                                 VERSUS

STATE BANK OF INDIA AND ORS.                  Respondent(s) J U D G M E N T

KURIAN, J. 1. Leave granted.   2. The dispute in this appeal is whether the tenancy created in favour of the appellant is a sham one or not.   It  is  not  in  dispute  that  there  is  no adjudication on this aspect.  Under Section 14 of the SARAFAESI Act, this aspect can be adjudicated before the Chief Metropolitan Magistrate, Esplanade Court, Mumbai.   3. Mr.  Amarendra  Sharan,  learned  senior  counsel appearing for the Bank, submits that the Magistrate, in fact, had gone into the aspect while deciding the Invervention Application.   4. We do not think that the same would be sufficient in adjudicating the issue regarding tenancy.  In our opinion, an inquiry, with the participation of the appellant, would be in the fitness and fairness of

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the adjudication.  Therefore, this appeal is disposed of, directing the Magistrate to conduct an inquiry with regard to the genuineness of the tenancy created by  the  third  respondent  with  the  appellant.   The parties  shall  appear  before  the  Magistrate  on 01.08.2016  and  the  Magistrate  will  conduct  the required inquiry and complete the proceedings within one month thereafter.   5. Needless to say, the parties shall  extend their cooperation,  without  praying  for  unnecessary adjournments,  so  that  the  matter  can  be  decided within the stipulated time.   6. We make it clear that the pendency of the inquiry before the Magistrate shall not stand in the way of the  Bank  proceeding  against  the  landlord  in accordance with law.  7. I. A. No. 2 for directions is disposed of.   

No costs.      .......................J.

             [ KURIAN JOSEPH ]  

.......................J.               [ ROHINTON FALI NARIMAN ]  New Delhi; JUNE 30, 2016.