Statutory Amalgamation Does Not Shield Tenant from Eviction for Parting with Possession

Case Snapshot

• Case Name: British Motor Car Company (1939) Ltd. v. M/s Hindustan Commercial Bank Ltd. (Since merged into Punjab National Bank) & Anr.

• Citation: 2026 INSC 671

• Bench: Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh

• Date of Judgment: July 9, 2026

• Area of Law: Rent Control Law, Banking Regulation, Property Law, Amalgamation

Judgment in Brief

The Supreme Court allowed the landlord's appeal and restored the eviction decree under Section 14(1)(b) of the Delhi Rent Control Act, 1958. The Court held that the amalgamation of the tenant bank (Hindustan Commercial Bank) with Punjab National Bank under Section 45 of the Banking Regulation Act, 1949, resulted in the tenant "parting with possession" of the tenanted premises without the landlord's written consent, thereby attracting the eviction ground. The Court clarified that Section 14(1)(b) does not distinguish between voluntary and involuntary transfers. The scheme framed under Section 45 of the BR Act is administrative, not legislative, and cannot override the rent control legislation. Consequently, the successor bank (PNB) was held liable for eviction.

Relevant Facts

• The appellant (landlord) let out premises in Connaught Circus, New Delhi, to Hindustan Commercial Bank (HCB) on a monthly rent of ₹585.

• On December 18, 1986, the Government of India issued a notification under Section 45(7) of the Banking Regulation Act, 1949, sanctioning the amalgamation of HCB with Punjab National Bank (PNB) effective from December 19, 1986.

• Upon amalgamation, all rights, liabilities, assets, and interests of HCB vested in PNB, and HCB ceased to exist.

• The landlord filed an eviction petition under Section 14(1)(b) of the Delhi Rent Control Act, 1958, alleging that HCB had sublet/assigned/parted with possession of the premises to PNB without the landlord's written consent.

• The Additional Rent Controller dismissed the petition, holding that the amalgamation scheme was statutory and binding on the landlord.

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