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SC Refers Time-Barred Debt Recovery Dispute Under SFC Act to Larger Bench
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Khemka & Anr.
Vs Haryana State Industrial and Infrastructure Development Corporation Limited & Ors.
(Supreme Court of India) The Supreme Court granted leave in appeals challenging a Punjab and Haryana High Court judgment which had upheld recovery proceedings initiated under the Haryana Public Moneys (Recovery of Dues) Act, 1979 read with the State Financial Corporations Act, 1951, holding that a debt barred by limitation could still be recovered because the Limitation Act bars the remedy but does not extinguish the debt.
The appellants contended that the recovery proceedings were ...