Section 5 limitation relief excluded for SARFAESI Section 17 applications in suit-like original proceedings

Section 5 of the Limitation Act does not extend the limitation period for an application under Section 17(1) of the SARFAESI Act. The tribunal's role under Section 17 is treated as an original, suit-like proceeding, and the Limitation Act applies only as far as may be under the special scheme. Because the SARFAESI Act prescribes a specific forty-five-day period and reflects an intent for expeditious disposal, enlargement of time under Section 5 is excluded unless the statute expressly permits it. Section 29(2) does not alter that result.

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Issues: Whether the period of limitation prescribed for an application under Section 17(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 can be extended by invoking Section 5 of the Limitation Act, 1963.

Analysis: Section 17(7) of the SARFAESI Act requires the Debts Recovery Tribunal to deal with applications under Section 17 in accordance with the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and Section 24 of that Act makes the Limitation Act applicable as far as may be. The proceedings under Section 17 were treated as original proceedings, akin to a suit, rather than appellate proceedings. On that footing, the general application of the Limitation Act did not carry with it Section 5, because that provision is not attracted to a suit-like original proceeding. The Court also held that the presence of a specific period of forty-five days in Section 17 and the scheme of expeditious disposal showed that the Legislature did not intend enlargement of time by resort to Section 5. Section 29(2) of the Limitation Act was held not to assist in extending Section 5 to such proceedings.

Conclusion: Section 5 of the Limitation Act, 1963 does not apply to an application under Section 17(1) of the SARFAESI Act, 2002.

Ratio Decidendi: Where a special statute creates an original, suit-like remedy before a tribunal and prescribes a specific limitation period while making the Limitation Act applicable only as far as may be, Section 5 of the Limitation Act is excluded unless the special statute expressly provides otherwise.

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