Case Note & Summary
The petitioner, Uma Kumar, proprietor of Kandhan Electricals & Engineers, filed a winding-up petition under Sections 433 and 434 of the Companies Act, 1956 against M/s. Reunion Electrical Manufacturers Pvt. Ltd. claiming a debt of Rs.13,19,853.48 for goods supplied between April and November 2001. The company acknowledged liability in letters dated 5.11.2001, 22.11.2001, and 19.4.2002. The petition was filed on 9.8.2005. The sole defence was that the claim was barred by limitation. The court held that the last acknowledgment was on 19.4.2002, and the petition filed on 9.8.2005 was beyond three years from that date, thus time-barred. The petition was dismissed.
Headnote
A) Limitation Act - Acknowledgment of Liability - Section 18 - Winding-Up Petition - The court considered whether letters acknowledging debt save limitation for a winding-up petition filed more than three years after the last acknowledgment. Held that acknowledgment extends limitation only for three years from the date of acknowledgment; petition filed after that period is time-barred. (Paras 4-5)
Issue of Consideration
Whether a winding-up petition under Sections 433 and 434 of the Companies Act, 1956 is barred by limitation when filed more than three years after the last acknowledgment of liability.
Final Decision
Petition dismissed as barred by limitation
Law Points
- Limitation Act
- 1963
- Section 18
- acknowledgment of liability
- winding-up petition
- Companies Act
- 1956
- Sections 433 and 434
- limitation period
- three years from last acknowledgment
