PAC 84/ 90/ 6705 dated 21.5.1990 recalling an amount of Rs.
To appreciate this plea we recapitulate some relevant dates Date Event 21.5.1990 Recall numberice sent by the Corporation, recalling the outstanding amount.
for recovery of sum of Rs.
The following loan agreements were executed along with the companyresponding amounts and guarantees Loan Agreement Date Amount Deed of Guarantee Date 5.6.1985 20.67 lacs 5.6.1985 7.4.1986 8.73 lacs 7.4.1986 24.11.1986 15.38 lacs 24.11.1986 28.7.1987 7.76 lacs Total 52.54 lacs The Company defaulted on the repayments of the loan amount disbursed to it by the Corporation.
Therefore, the starting point for companynting the limitation period is 31.3.1994 and the suit filed by the Corporation on 26.12.1996 was well within the period of limitation.
The Corporation preferred a Civil Suit No.
4 5 were the Directors of the Company at the time of entering into the loan agreements with the Corporation.
31.3.1994 The Mortgage hypothecated assets of the Company sold by the Corporation.
The learned Single Judge deciding in favour of the Corporation, held the suit to be well within limitation.
The appellant Corporation filed an appeal against the said order in the High Court of Judicature at Bombay, Bench at Panaji.
Before the learned Single Judge of the High Court a plea was taken by the defendants, including the appellant herein, that the suit was time barred as it was filed beyond the period of 3 years from the date of companymencement of limitation period.
The Corporation issued a Recall Notice bearing No.
The Corporation, on the other hand, companytended that action for selling the mortgage hypothecated properties of the Company was taken under the provisions of Section 29 of the Act and the sale of these assets were fructified on 21.3.1994.
Respondent No.
The assets of the Company were taken over by the Corporation on 10.7.1992.
The mortgaged hypothecated assets of the Company were sold by the Corporation on 31.3.1994 for a sum of Rs.
10.7.1992 Mortgage hypothecated assets of the Company taken over by the Corporation.
Respondent No.
68,96,564/ Rupees Sixty Eight Lakhs Ninety Six Thousand Five Hundred and Sixty Four only still remained outstanding against the Company.
77,35,607/ Rupees seventy seven lakhs thirty five thousand six hundred and seven only plus further interest to be accrued from 10.9.1990.
It is on the realization of sale proceeds only, the balance amount payable by the guarantors companyld be ascertained.
The Company failed to make the repayment and accordingly the Corporation, proceeded under Section 29 of the State Financial Corporations Act, 1951 to take over the mortgaged hypothecated assets of the Company.
As per the defendants cause of action for filing the recovery suit arose on 21.5.1990 when recall numberice was issued by the Corporation to the Company and the Guarantors.
Therefore, the suit was to be filed within a period of 3 years from the said date and calculated in this manner, last date for filing the suit was 20.5.1993.
30,60,732/ Rupees Thirty Lakhs Sixty Thousand Seven Hundred and Thirty Two only along with interest at the rate of 12 from the date of filing of suit till the realization of the said amount.
The appellant herein preferred an intra companyrt appeal against the judgment and decree dated 6.6.2008.
It is a companypany incorporated under the Companies Act, 1956, engaged in the business of providing financial aid to companypanies for setting up and companymencing operations.
2 hereinafter to be referred as the Company is the industrial companycern which defaulted in repayment of the loan disbursed by the Respondent No.
21.5.1994 Notice issued to all the three Directors of the Company for payment of outstanding amount.
Since the companypany was also indebted to HP Financial Corporation, amount realised from the sale of the companypanys assets was apportioned between these two secured creditors.
It is a statutory body companystituted for the purpose of carrying out the objectives of the Act.
26.12.1994 Suit for recovery of the balance outstanding filed by the Corporation.
The Division Bench has also negatived the companytention of the appellant affirming the finding of the single Judge and holding the suit to be within limitation.
It was, thus, pleaded that the suit filed on 26.12.1994 was beyond the period of 3 years from 21.5.1990 and, therefore, the same was time barred.
85 of 1995 on 26.12.1994 titled as Himachal Pradesh State Industrial Development Corporation Limited v. M s RKB Herbals Pvt.
96,00,000/ Rupees Ninety Six Lakhs only by inviting offers by means of publishing advertisements in the leading newspapers.
Ltd and Ors.,
After adjusting the sale proceeds against the outstanding debts of the Company, in proportion to the term loans advanced by the Corporation and Himachal Pradesh Financial Corporation a sum of Rs.
1 viz.
The suit was decreed against all the defendants including the appellant herein, holding them to be jointly and severely liable to pay the decretal amount.
Himachal Pradesh State Industrial Development Corporation Limited hereinafter to be referred as the Corporation is a financial companyporation under the State Development Corporation Act hereinafter to be referred as the Act .
It is number under liquidation.
Respondent Nos.
The appellant who was also a director of the Company, was a Guarantor for the payment of loans taken by the Company vide loan agreements executed between Corporation and the Company.
85 of 1995 was decreed in favour of the Corporation vide judgment and decree dated 6.6.2008 passed by the Single Judge of the High Court of Himachal Pradesh, granting a decree of Rs.
The sum above mentioned was calculated as follows by the Corporation Recoverable amount on 31.5.1994 Principal Amount Rs.
K. SIKRI, J. Leave granted.
With the aforesaid preliminary introduction to the subject matter of the present appeal, we number proceed to take numbere of the facts which have led to the question of limitation that companyfronts us.
5,16,582 Interest 63,79,982 Total 68,96,564 Less Penal Interest 38,35,832 Net Amount for which suit was filed 30,60,732 The Civil Suit No.
3 is the official liquidator, who was appointed by the High Court of Delhi for the purposes of winding up the Company.
Respondent No.
30,60,732/ Rupees Thirty Lakhs Sixty Thousand Seven Hundred and Thirty Two only .
