Section 47 CPC - The Legal Chamber

Conduct Matters: Supreme Court Confirms Auction Sale but Orders Buyer to Pay Extra ₹25 Lakh/Acre

29Sep

By The Legal ChamberNo Comments

Supreme Court

Conduct Matters: Supreme Court Confirms Auction Sale but Orders Buyer to Pay Extra ₹25 Lakh/Acre

The Supreme Court upheld the High Court's decision confirming the validity of a court-auctioned property sale. It endorsed the directions for a fresh survey to demarcate the exact purchased area and for the auction purchaser to pay additional consideration, citing his conduct, while ruling that subsequent challenges to the sale were barred by law. Facts Of The Case: The dispute originated from a debt recovery proceeding initiated by the Karnataka State Financial Corporation (KSFC) against a company, for which the respondent, G.M. Krishna, was a guarantor. Following a decree, KSFC attached the respondent's agricultural land for auction. The appellant, R. Raghu, emerged as the highest bidder in a court auction in 2003, and a sale certificate was subsequently issued. The responden...

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

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...

Supreme Court Allows Execution Petition: No Time Limit for Enforcing Permanent Injunctions

The Supreme Court ruled that a decree of permanent injunction creates a perpetual right enforceable at any time against future breaches, clarifying that satisfaction recorded in one execution petition doesn't bar subsequent petitions under Section 47 CPC for fresh violations. It held that Article 136 of the Limitation Act imposes no time limit for enforcing perpetual injunctions, rejecting the erroneous application of res judicata by lower courts. The judgment emphasizes that each breach of injunction constitutes a fresh cause of action, requiring executing courts to examine subsequent execution petitions on merits regardless of prior disposals. The Court distinguished between temporary and permanent injunctions while underscoring the continuing nature of injunctive relief. Facts Of The C...