Jul 23, 2024

SC Refers Question on Whether Time Barred Debts Can be Recovered Through Remedies Other than Civil Suits

The SC in the case of K.P. Khemka v. Haryana State Industrial and Infrastructure Development Corporation[1], was faced with the issue of whether time-barred debts can be recovered through remedies under special statutes for debt recovery. The Court referred to the decision in State of Kerala v. V. R. Kalliyanikutty[2] wherein the SC had held that a time-barred could not be recovered under the Kerala Revenue Recovery Act (a special statute), as there was no enlargement of right to recover in this Act. Meanwhile, in K.C. Ninan v. Kerala State Electricity Board[3], the SC held that the statute of limitation only barred a remedy, while the right to recover the loan through ‘any other suitable manner provided’ remained untouched. In view of the conflicting decisions on this issue, the SC has referred the matter to a larger bench for consideration.

[1] K.P. Khemka v. Haryana State Industrial and Infrastructure Development Corporation, 2024 SCC OnLine SC 846.

[2] State of Kerala v. V. R. Kalliyanikutty, (1999) 3 SCC 657.

[3] K.C. Ninan v. Kerala State Electricity Board, 2023 INSC 560.

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