Surety liability enforcement follows where notice is served and no cause is shown in response.

In an application for enforcement of a surety's liability under section 31(1)(aa) of the State Financial Corporations Act, 1951, notice under section 32(1A) must be served on the surety to show cause why liability should not be enforced. Where notice has been served and no counter, explanation, or other cause is shown by the date specified, section 32(4A) requires immediate enforcement. On the facts noted, some respondents appeared but filed no response, and the surety's liability was ordered to be enforced in favour of the petitioner.

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Issues: Whether, in an application under section 31(1)(aa) of the State Financial Corporations Act, 1951, the Court should order enforcement of the surety's liability when notice has been served and no cause is shown in response.

Analysis: The application was one for enforcement of a surety's liability under section 31(1)(aa). Section 32(1A) requires notice to the surety to show cause why liability should not be enforced, and section 32(4A) mandates immediate enforcement if no cause is shown by the date specified. Notice had been served, some respondents entered appearance, but no counter or explanation was filed, and no cause was shown against enforcement.

Conclusion: The liability of the surety was ordered to be enforced in favour of the petitioner.

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