Limitation for recovery claims expires despite exclusion of winding-up time, and mandatory dismissal follows under the Limitation Act.

A recovery claim accrues when the amount becomes due, and the prescribed limitation period is three years. Time during which a winding-up petition remains pending is excluded, and section 458A of the Companies Act, 1956 allows an additional year for filing. On the stated calculation, the limitation period expired before the petition was presented, so the proceeding was time-barred. Section 3 of the Limitation Act, 1963 requires dismissal of a proceeding instituted beyond limitation even if limitation is not specifically pleaded, making dismissal mandatory once delay is established.

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Issues: Whether the petition was within limitation and maintainable.

Analysis: The claim arose on the date when the amount became due, and the prescribed limitation period for recovery was three years. The period during which the winding-up petition remained pending was excluded, and an additional year was available under section 458A of the Companies Act, 1956. On that calculation, the last date for filing expired before the petition was presented. Section 3 of the Limitation Act, 1963 makes dismissal mandatory when a proceeding is instituted after the prescribed period, even if limitation is not pleaded.

Conclusion: The petition was barred by limitation and was dismissed.

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