Supreme Court Orders Punjab National Bank to Vacate Delhi Property

The Supreme Court of India ordered Punjab National Bank to vacate a commercial property in Connaught Circus, Delhi, by January 31, 2027. The ruling resolves a legal dispute involving a lease first established in 1947 between British Motor Car Company Ltd and Hindustan Commercial Bank.

In December 1986, Hindustan Commercial Bank amalgamated with Punjab National Bank under a Reserve Bank of India-backed scheme. The court determined that this amalgamation constituted a parting with possession without the landlord's written consent, which violates Section 14(1)(b) of the Delhi Rent Control Act. The landlord, MG, initiated eviction proceedings in 1987.

Justice Sanjay Karol clarified that a successor bank is not exempt from obtaining landlord permission even when a merger is involuntary or mandated by government notification. The court further stated that a Reserve Bank of India scheme does not override the statutory requirements of the Delhi Rent Control Act.