Limitation for liquidator misfeasance claims runs from the wrongful act, not from winding up commencement.

An application by a liquidator under Section 235 of the Indian Companies Act, 1913, for compensation for misfeasance was held to fall under the specific limitation article for misfeasance claims, not the residuary article. Section 235 was treated as a suit for limitation purposes, but only as a summary remedy for an existing liability; it did not create a fresh cause of action or postpone time to the winding up resolution or order. Limitation therefore ran from the date of the wrongful act, and the application was barred as time-barred.

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Issues: Whether an application by a liquidator under Section 235 of the Indian Companies Act, VII of 1913, for compensation for misfeasance is governed by Article 36 of the First Schedule of the Limitation Act or Article 120, and from what date limitation begins to run.

Analysis: An application under Section 235 is treated as a suit for limitation purposes by virtue of sub-section 3. The claim was one for compensation for misfeasance, which falls within the specific article dealing with such claims, and a general residuary article cannot apply where a specific one governs. The fact that the remedy is available only in winding up does not create a new cause of action or postpone limitation to the date of liquidation, because the section provides only a summary remedy for an existing liability. Time therefore runs from the date of the misfeasance, not from the date of the winding up resolution or order.

Conclusion: The application was barred by limitation under Article 36, and the appeal succeeded.

Final Conclusion: The order of the District Judge was set aside and the respondent's application for recovery was dismissed as time-barred.

Ratio Decidendi: A liquidator's claim under Section 235 of the Indian Companies Act, VII of 1913, for compensation for misfeasance is governed by the specific limitation article applicable to misfeasance, and limitation begins from the date of the wrongful act, not from the commencement of winding up.

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