execution proceedings - 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 upheld the decree for specific performance of a 2001 land sale agreement, ruling that the plaintiffs proved readiness and willingness under the Specific Relief Act, 1963. It nullified subsequent fraudulent sales under Section 52 of the Transfer of Property Act (lis pendens) and affirmed the court’s power to grant possession under Section 22 despite omitted pleadings. The judgment emphasized that mere price escalation cannot deny equitable relief and imposed an additional ₹25 lakh payment to balance interests. Collusive transactions were declared void, reinforcing protections against pendente lite transfers. Facts Of The Case: In 2001, Krishan Gopal (appellant) agreed to sell 9 acres of agricultural land in Punjab to Gurmeet Kaur and her two sons for ₹10 lakh under an Ag...

Tag: execution proceedings

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

Supreme Court Upholds Specific Performance: Land Sale Agreement Enforced After 24 Years