VidhiSangh

Supreme Court of India · 09/07/2026

BRITISH MOTOR CAR COMPANY (1939) LTD. versus M/S HINDUSTAN COMMERCIAL BANK LTD. SINCE HAS BEEN MERGED INTO PUNJAB NATIONAL BANK & ANR.

[2026] 7 S.C.R. 581 · 2026 INSC 671

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Summary

The Supreme Court held that when a tenant bank was amalgamated into Punjab National Bank under a scheme framed under Section 45 of the Banking Regulation Act, 1949, and the tenancy and possession passed to PNB without the landlord's written consent, the ground of eviction under Section 14(1)(b) of the Delhi Rent Control Act, 1958 was made out. The provision does not distinguish between voluntary and involuntary transfers, and a Section 45 scheme is administrative, not legislative, so it cannot override Section 14(1)(b).

Issues

  1. Whether the amalgamation of the tenant bank with PNB under a scheme framed under Section 45 of the Banking Regulation Act, 1949 amounts to subletting, assignment or parting with possession under Section 14(1)(b) of the Delhi Rent Control Act, 1958.
  2. Whether a transfer of tenancy that is involuntary, or that results from a scheme sanctioned by the Central Government, falls outside Section 14(1)(b).
  3. Whether a Section 45 amalgamation scheme is legislative in character so as to override the Delhi Rent Control Act, and whether Asha Rohatgi applied.

Provisions considered

Held

Result

Appeal allowed; the High Court's judgment set aside and the eviction decree of the Additional Rent Control Tribunal restored. The respondents were given until 31 January 2027 to deliver vacant possession, on filing an undertaking within four weeks and continuing to pay rent, failing which the landlord may take possession in accordance with law.

Judgment PDF: Supreme Court of India, [2026] 7 S.C.R. 581.