Period spent while pursuing SARFAESI Proceedings cannot extend the period of limitation- M/s. Gradient Nirman Private Limited Vs. M/s. IFCI Ltd. – NCLAT
The NCLAT held that at the cost of repetition, based on the ratio laid down by the aforenoted judgments, we are of the considered view that suit for recovery based upon a cause of action even if it is within limitation, it cannot in any manner impact the separate and independent remedy of a winding-up proceeding. A suit for recovery is a separate and independent proceeding distinct from the remedy of winding-up and therefore the contention of the Learned Counsel appearing for the Respondents/ Financial Creditor that the period spent while pursuing SARFAESI Proceedings should extend the period of limitation, cannot be sustained, as the intent of the Court is not to give a new lease of life to the debt which is already time barred.