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The SC held that the suit against the appellant, a State instrumentality under the SFC Act, 1951, was not maintainable due to failure to comply with mandatory pre-institution requirements including notice under Section 80 CPC and mediation provisions. The trial court's decree was rendered a nullity for not addressing foundational issues of jurisdiction, maintainability, and applicability of the repealed Interest on Delayed Payments Act, 1993, which was inapplicable as the transactions predated the Act. The doctrine of sub silentio was invoked to confirm that unresolved jurisdictional objections could be raised in execution under Section 47 CPC. The decree passed without jurisdiction was void, and the exorbitant interest awarded was unlawful, lacking privity of contract. Execution proceedings, including attachment of bank accounts and encashment of guarantees, were without legal authority. The post-decree application under Section 21 Limitation Act was not maintainable. The impugned decrees and orders were set aside and the appeal allowed.
The SC held that the suit against the appellant, a State instrumentality under the SFC Act, 1951, was not maintainable due to failure to comply with mandatory pre-institution requirements including notice under Section 80 CPC and mediation provisions. The trial court's decree was rendered a nullity for not addressing foundational issues of jurisdiction, maintainability, and applicability of the repealed Interest on Delayed Payments Act, 1993, which was inapplicable as the transactions predated the Act. The doctrine of sub silentio was invoked to confirm that unresolved jurisdictional objections could be raised in execution under Section 47 CPC. The decree passed without jurisdiction was void, and the exorbitant interest awarded was unlawful, lacking privity of contract. Execution proceedings, including attachment of bank accounts and encashment of guarantees, were without legal authority. The post-decree application under Section 21 Limitation Act was not maintainable. The impugned decrees and orders were set aside and the appeal allowed.
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