Section 47 CPC - 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 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...

Tag: Section 47 CPC

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

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