British Motor Car Company (1939) Ltd. Vs Hindustan Commercial Bank Ltd. (Supreme Court of India)
The Supreme Court held that where tenancy rights and possession of leased premises are transferred to another bank pursuant to amalgamation or merger without the landlord’s written consent, such transfer constitutes “assignment” or “parting with possession” under Section 14(1)(b) of the Delhi Rent Control Act, 1958, irrespective of whether the transfer is voluntary or involuntary. The Court observed that Section 14(1)(b) applies once the original tenant loses possession and another entity acquires tenancy rights and possession without the landlord’s written consent, and that the reasons for such transfer are irrelevant. It rejected the contention that an amalgamation scheme framed under Section 45 of the Banking Regulation Act, 1949 overrides the Delhi Rent Control Act, holding that the scheme-making process is administrative rather than legislative. Finding that the original tenant ceased to exist upon amalgamation, the transferee bank came into possession of the premises, and the landlord’s written consent had not been obtained, the Supreme Court allowed the appeal, set aside the Delhi High Court’s judgment, restored the eviction decree passed by the Rent Control Tribunal, and granted time until 31 January 2027 to hand over possession.
