Limitation in winding up claims requires exclusion of the statutory period under Section 458A for recovery by the official liquidator.

In computing limitation for an official liquidator's recovery claim arising from a hire purchase transaction, the last payment fixed the starting point, and the claim remained within time even on the respondent's version of that date. Section 458A of the Companies Act, 1956 required exclusion of the period from commencement of winding up proceedings until the winding up order, plus one further year, for limitation purposes. The argument that the absence of a final winding up order prevented application of the provision, or that any winding up order would defeat limitation by relation back, was rejected. The recovery application was therefore not barred by limitation.

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Issues: Whether the company application for recovery was barred by limitation, and whether the period covered by the winding up proceedings was to be excluded in computing limitation.

Analysis: The claim arose from a hire purchase transaction and the last payment made by the respondent fixed the starting point for limitation. Even on the respondent's version of the last payment date, the claim was still within time when the winding up petition was filed. Section 458A of the Companies Act, 1956 requires exclusion, for limitation purposes, of the period from the commencement of winding up proceedings until the winding up order and a further one year thereafter. The contention that the absence of a final winding up order prevented application of the provision, or that any winding up order would relate back so as to defeat limitation, was rejected. The exclusion mandated by the statute governs the computation of limitation for the official liquidator's recovery claim.

Conclusion: The application was not barred by limitation and was liable to be allowed.

Ratio Decidendi: In computing limitation for a claim by the official liquidator, the period from commencement of winding up proceedings until the winding up order, together with one year immediately thereafter, must be excluded under Section 458A of the Companies Act, 1956.

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