Back
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
V KAMESWAR RAO, T.M.NADAF, JJ
S. Nagaraja – Appellant
Versus
Karnataka State Finance Corporation – Respondent
| Table of Content |
|---|
| 1. appeal against trial court judgment. (Para 1 , 2 , 3) |
| 2. background of financial transactions. (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 3. details of guarantors' liabilities. (Para 11 , 12 , 13 , 14 , 15) |
| 4. arguments from both parties. (Para 18 , 22 , 23 , 24) |
| 5. trial court's determination of debt and interest. (Para 20) |
| 6. court's decision based on interpretation. (Para 21 , 37) |
| 7. arguments presented by the appellants and the response by the corporation. (Para 25) |
| 8. court's critical observations. (Para 26 , 28 , 29 , 30) |
| 9. application of relevant legal provisions. (Para 31 , 32 , 33) |
| 10. final order and dismissal of appeal. (Para 38) |
JUDGMENT :
T.M. NADAF, J.
1. This appeal is by appellants/respondent nos.2 and 4 before the trial court, calling in question the judgment and decree dated 18.03.2021, in COM.MISC NO.279/2004, passed by the LXXXIII Additional City Civil And Sessions Judge, Bengaluru, only against the appellants herein (respondents Nos.2 and 4) and also to allow the counter claim of appellant No.1.
2. Com.Misc.No.279/2004 registered on the application filed by respondent No.1 - Karnataka State Finance Corporation (‘Corporation’ for short) under Sections-31(1) and 32(2)
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....
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 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 remedies under Sections 29 and 31 of the State Financial Corporations Act are independent and can be pursued separately.
A decree cannot be passed under Section 31 of the State Financial Corporations Act, 1951, and any execution petition based on such a decree is not maintainable.
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....
A District Judge lacks jurisdiction to order direct payments in cases under S.31 of the State Financial Corporation Act.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
