Limitation exclusion for companies in winding up under Section 458A continues even if the winding up order is later kept in abeyance.

Section 458A of the Companies Act, 1956 excludes, for a company in winding up, the period from commencement of winding up to the winding up order and one year thereafter, with the result that limitation remains suspended for qualifying suits and applications. Where the company's claim was not already time-barred when winding up proceedings commenced, later abeyance of the winding up order does not defeat the statutory exclusion. On that basis, the applications for restoration of suits and execution were not barred by limitation, and the orders treating them as time-barred were unsustainable.

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Issues: Whether section 458A of the Companies Act, 1956 excluded the period of limitation for the company's applications for restoration of suits and for execution, and whether the pendency or abeyance of the winding up order prevented the company from claiming that exclusion.

Analysis: Section 458A operates where a suit or application is made in the name and on behalf of a company which is being wound up by the court. The section excludes the period from commencement of winding up to the winding up order, together with one year immediately following the order. On the facts, winding up proceedings had commenced before the impugned applications and the claims sought to be pursued were not already time-barred on that date. The later order keeping the winding up order in abeyance did not destroy the applicability of section 458A. The consequence was that the Limitation Act stood suspended for the relevant claims during the excluded period, so the applications could not be treated as delayed or time-barred.

Conclusion: Section 458A applied in favour of the company, the applications were not barred by limitation, and the orders rejecting them as time-barred were unsustainable.

Ratio Decidendi: Where winding up proceedings have commenced and the company's claim was not already barred on that date, section 458A of the Companies Act, 1956 excludes the relevant period for limitation and keeps the law of limitation in suspension for suits and applications filed by the company, even if the winding up order is later kept in abeyance.

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