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SUPREME COURT OF INDIA
J. B. PARDIWALA, R. MAHADEVAN
Odisha State Financial Corporation – Appellant
Versus
Vigyan Chemical Industries – Respondent
JUDGMENT :
R. MAHADEVAN, J.
1. Leave granted.
2. The present appeal has been filed by the Odisha State Financial Corporation, a government corporation in the State of Odisha, against the final judgment and order dated 22.11.2022 passed by the High Court of Uttarakhand at Nainital1 [Hereinafter referred to as “the High Court”] in Writ Petition (M/S) No. 2314 of 2022, whereby the High Court dismissed the writ petition filed by the appellant under Article 227 of the Constitution of India, challenging the civil proceedings and the orders passed by the Courts below regarding the computation of interest on the decretal amount and the consequential execution proceedings.
BRIEF FACTS
3. The appellant, which is a State Financial Corporation, along with Industrial Promotion & Investment Corporation of Odisha2 [For short “IPICOL”] jointly financed an industrial unit, namely, M/s. Manorama Chemicals Works Ltd. (Respondent No. 2 herein) on 22.11.1984 for setting up a bleaching powder unit at Ganjam, Odisha. M/s. Vigyan Chemical Industries Limited Dehradun (Respondent No. 1 herein) supplied raw materials worth Rs. 66,454.65 to Respondent No. 2 on 29.07.1985. Since Respondent No. 2 defaulted in repa
The State Financial Corporation is not liable under a decree for a defaulting borrower without compliance with notice requirements and jurisdictional procedures; attachment of its assets for past deb....
Post-liquidation, a financial institution retains the right to recover dues from guarantors, reaffirming that guarantees remain enforceable regardless of the principal debtor's discharge during insol....
The right of a Financial Corporation to recover dues from guarantors survives post-liquidation of the principal debtor, and such guarantees remain enforceable.
The main legal point established in the judgment is that the Interest on Delayed Payment to Small Scale and Ancillary Industrial Undertakings Act, 1993 does not apply to transactions prior to its enf....
Guarantors remain jointly and severally liable for loan defaults regardless of the principal debtor's separate legal status, as established under Sections 29 and 31 of the State Financial Corporation....
The limitation period for recovery of money from a surety under the State Financial Corporation Act is three years, and failure to initiate proceedings within this period renders the claim barred by ....
The petitioner, as a secured creditor, can raise the claim for a share in the interest amount before the respondent No.1 as directed in the previous judgment.
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