article 12 - The Legal Chamber

The Supreme Court held that the suit against the State Financial Corporation was not maintainable due to non-compliance with the mandatory notice under Section 80 CPC. The decree was declared a nullity as it erroneously applied the Interest on Delayed Payments Act, 1993, to a pre-enactment transaction and fastened liability without privity of contract. Execution proceedings were quashed. Facts Of The Case: In 1985, Respondent No. 1, M/s. Vigyan Chemical Industries, supplied raw materials to Respondent No. 2, an industrial unit. Due to a loan default, the Appellant, Odisha State Financial Corporation (OSFC), took possession of Respondent No. 2's unit in 1987 under the State Financial Corporations Act, 1951. In 1988, Respondent No. 1 filed a recovery suit for its unpaid dues. OSFC was impl...

The Supreme Court examined whether Air Force Schools qualify as a "State" under Article 12 or an "authority" amenable to writ jurisdiction under Article 226 of the Constitution. The majority held that despite partial government control and funding, the schools lacked pervasive state dominance, relegating disputes to private contract law. However, the dissenting opinion emphasized their public function, deep administrative control by the Indian Air Force, and indirect public funding, making them subject to writ jurisdiction. The split verdict clarifies the distinction between regulatory control and pervasive state authority in educational institutions Facts Of The Case: The case involved two civil appeals before the Supreme Court concerning the Air Force School, Bamrauli, Allahabad. In Ci...

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Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions

Supreme Court Split Verdict: When Can Schools Be Held Accountable Under Article 226?