execution of decree - 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 dismissed an appeal challenging the impleadment of a party in execution proceedings, holding that the application for deletion was barred by res judicata as objections were not raised earlier. It ruled that a decree for specific performance implicitly includes possession unless contested by a third party. The Court rejected claims of tenancy rights under the Kerala Rent Control Act due to lack of evidence and upheld the lower courts' findings, emphasizing that frivolous pleas cannot delay execution. Costs of ₹25,000 were imposed for protracting litigation. The Executing Court was directed to ensure possession is handed over within two months Facts Of The Case: The case originated from a 1996 agreement to sell between the original plaintiff (Prakasan) and defendant (Jame...

Tag: execution of decree

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

Legal Heir or Tenant? : Supreme Court Decides on Protracted Property Battle in Kerala