MAHARASHTRA STATE FINANCIAL CORPORATION vs JAYCEE DRUGS AND PHARMACEUTICALS PVT. LTD.AND ORS.

The Supreme Court held that under Sections 31 and 32 of the State Financial Corporation Act, 1951, a petition for enforcing the liability of a surety can be filed in the City Civil Court if the claim is up to Rs. 50,000, and in the High Court if it exceeds that amount. The Court clarified that after the amendment by Act 43 of 1985, a money decree can be passed against a surety who has provided only a personal guarantee. The Court ultimately ruled that the High Court had jurisdiction to entertain such petitions, thus overturning the earlier Bombay High Court decision reported in 1987 Mah. L.J. 243.