Bank Amalgamation Under Banking Regulation Act Attracts Eviction for Subletting Without Landlord Consent
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Case: BRITISH MOTOR CAR COMPANY (1939) LTD. v. M/S HINDUSTAN COMMERCIAL BANK LTD. SINCE HAS BEEN MERGED INTO PUNJAB NATIONAL BANK
Court: Supreme Court of India
Date: 09-07-2026
Law: delhi rent control act, Banking Regulation Act, Banking Companies (Acquisition and Transfer of Undertakings) Act, Companies Act.
Highlights of the Judgment:
- Interpretation of Section 14(1)(b) of the Delhi Rent Control Act, 1958, regarding unauthorized parting with possession.
- Whether tenancy transfers via bank amalgamation constitute subletting or assignment without the landlord's written consent.
- The irrelevance of the distinction between voluntary and involuntary transfers under rent control provisions.
- Classification of amalgamation schemes under Section 45 of the Banking Regulation Act, 1949, as administrative rather than legislative.
- Distinction between administrative schemes and legislative schemes under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
- Analysis of judicial precedents governing corporate mergers and their impact on existing leasehold covenants.