MAHABIR GOPE AND OTHERS vs HARBANS NARAIN SINGH AND OTHERS.

The Supreme Court ruled that a mortgagee cannot create an interest in mortgaged property that extends beyond their own interest, as established under the Bihar Tenancy Act, 1937, specifically Sections 20 and 21. The Court held that the tenant and their successors did not acquire permanent occupancy rights despite over 30 years of possession, as the mortgagee was not a 'proprietor' or 'tenure-holder' under Section 5(2) of the Act. The settlement by the mortgagee was deemed not bona fide, confirming the High Court's decision.