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SC dismisses Dunlop India's plea

SC dismisses Dunlop India's plea challenging a central government decision to terminate its tenancy and evict it from a rented premise in Chandigarh.

business Updated: Jun 26, 2007 21:07 IST

The Supreme Court has dismissed Dunlop India's plea challenging a central government decision to terminate its tenancy and evict it from a rented premise in Chandigarh.

A Bench headed by Justice Tarun Chatterjee on June 24 dismissed the petition seeking a direction to the Ministry of Finance to maintain status quo with regard to the possession of the property till the disposal of the matter.

Challenging the Punjab and Haryana High Court's judgement holding that eviction proceedings were maintainable against a sick firm, Dunlop said the government cannot claim rent arrears from a sick company registered with BIFR under the Sick Industrial Company Act, 1985.

The High Court had directed the company to hand over the possession of the premises to Punjab National Bank. It had also directed a court commissioner to use force to break open the locks, if required.

The erstwhile New Bank of India had in May 1975 let out basement floor of its premises in Chandigarh to the company.
It had later claimed rent arrears from April 1998 to March 2002 after Dunlop India became sick in December 1997.

The bank had filed a eviction petition under the Public Premises (Eviction of Unauthorised Occupant) Act 1971. The district court as well as the high court had dismissed Dunlop India's appeals.