Recovery Sought in 2017 Against Purchase Advance Paid on 10-04-2008 Was Time-Barred; CIRP Plea Dismissed | HC
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Case Details: Dimension Investment & Securities Ltd., In re - [2024] 159 taxmann.com 495 (HC - Delhi)
Judiciary and Counsel Details
- Dharmesh Sharma, J.
- Hrishikesh Baruah & Kumar Kshitij, Advs. for the Petitioner
- Devmani Bansal, Rohan Bhambai, Febin M. Varghese, Dhiraj A., Sandeep Aggarwal, Jai Sahai Endlaw, Advs. Ms Ruchi Sindhwani & Megha Bharara for the Respondent
Facts of the Case
In the instant case, a company ‘D’ was ordered to be wound up on 03.06.2011 and an Official Liquidator (OL) was appointed. It was brought to the notice of OL that ‘D’ had paid a sum on 10-4-2008 as an advance payment to the respondent company/debtor for the purchase of certain items.
The instant application was moved under section 446 of the Companies Act, 1956 by OL against the respondent, seeking recovery of the said amount. The Respondent filed a reply to the said application submitting that the purchase order was placed in the month of April 2018 and the payment was made in 2008 and the period of limitation for the claim of recovery would expire on 10-4-2011, hence, the claim was barred by limitation.
It was noted that the initial period of limitation for re-claiming the amount was three years and the period of limitation for claiming recovery of the amount commenced on 03.06.2011 and was extended by another year.
High Court Held
The High Court held that since the period of limitation expired on 03.06.2015 and the instant application was filed on 26.10.2017, the same was barred by the limitation and, thus, the instant application moved by the OL was to be dismissed.
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