Case Note & Summary
The petitioner, Nasir Amin Hungund, filed a winding up petition under Section 433(e) of the Companies Act, 1956 against M/s. Glasspaane Aluminium (I) Pvt. Ltd., claiming that the respondent company was unable to pay its debts. The petitioner alleged that between 2006 and 2007, he sold and delivered goods to the respondent, and that the respondent made various payments between 1st April 2006 and 13th July 2011, totaling Rs.28,83,330/-, leaving a balance of Rs.24,01,215/-. The petitioner issued a statutory notice on 11th February 2012 demanding Rs.32,98,552.76 ps., to which the respondent sought documents. The petition was filed in 2015. The respondent contended that the claim was time-barred as the last payment was made in July 2011 and the petition was filed beyond three years. The court examined the ledger account and found that the last payment was on 13th July 2011. The court held that under Article 137 of the Limitation Act, 1963, the period of limitation for filing a winding up petition is three years from the date when the debt becomes due. Since the petition was filed in 2015, more than three years after the last payment, the claim was clearly barred by limitation. The court dismissed the petition with no order as to costs.
Headnote
A) Limitation Act - Winding Up - Time-Barred Debt - Article 137 of Limitation Act, 1963 - The court considered whether a winding up petition under Section 433(e) of the Companies Act, 1956 is maintainable when the debt is claimed to be barred by limitation. The petitioner supplied goods between 2006-2007 and last payment was made in July 2011. The petition was filed in 2015, beyond three years from the last payment. The court held that the claim is clearly barred by limitation and the winding up petition cannot be entertained. (Paras 1-6)
Issue of Consideration
Whether a winding up petition based on a debt that is alleged to be time-barred under the Limitation Act, 1963 can be maintained.
Final Decision
The winding up petition is dismissed. No order as to costs.
Law Points
- Limitation Act
- 1963
- Article 137
- Winding up petition
- Debt
- Time-barred
- Companies Act
- 1956
- Section 433(e)
- Section 434
