The Hon’ble Supreme Court, on 21st October 2019, in the matter of Stressed Assests Stabilization Fund v. West Bengal Small Ind. Development Corporation Ltd. and Anr. observed that the mortgagee of lessee can have no right greater or better than that of the lessee in terms of the deed of lease.
The Hon’ble Supreme Court observed that:
If the lessor exercises his right to determine the lease, a mortgagee cannot claim rights superior to that of the lessee. (This inference has been drawn on the basis of Para 10)
A donee or a grantee can have no rights in excess of that possessed by the donor or the grantor. (Para 11)
The mortgagee of the lessee can have no right greater or better than that of the lessee in terms of the deed of lease. (Para 11)
Copy of judgement: Judgement_21-Oct-2019
-Adv. Tushar Kaushik