Withdrawal of civil suit without liberty did not bar statutory recovery proceedings or defeat limitation challenge.

Withdrawal of a civil suit without liberty did not bar recovery proceedings under a distinct statutory mechanism where the statute preserved other remedies and the withdrawal was made to pursue that remedy. Order 23 Rule 1 CPC was held to restrict a fresh suit, not proceedings under a separate recovery scheme, and the doctrine of election could not defeat recovery of public funds on these facts. The later recovery action was also not time barred because earlier recovery steps and issued certificates showed the matter had not remained idle for the period assumed below. The statutory recovery process was therefore allowed to proceed.

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Issues: (i) Whether withdrawal of the earlier suit without liberty barred recovery proceedings under the Himachal Pradesh Public Moneys (Recovery of Dues) Act, 1973 and amounted to abandonment of the claim. (ii) Whether the subsequent recovery proceedings were time barred.

Issue (i): Whether withdrawal of the earlier suit without liberty barred recovery proceedings under the Himachal Pradesh Public Moneys (Recovery of Dues) Act, 1973 and amounted to abandonment of the claim.

Analysis: The remedy under the Act was distinct from a civil suit and was expressly stated to be without prejudice to other remedies. The withdrawal was made to pursue the statutory recovery mechanism, and the language of the withdrawal order could not be read in isolation from the surrounding facts. Order 23 Rule 1 of the Code of Civil Procedure, 1908 operates against a fresh suit, not against proceedings under a different statutory recovery scheme. The doctrine of election and public policy could not be invoked to defeat recovery of public funds in these circumstances.

Conclusion: The withdrawal of the suit did not bar proceedings under the Act and there was no abandonment of the claim.

Issue (ii): Whether the subsequent recovery proceedings were time barred.

Analysis: The record showed earlier recovery steps and certificates had already been issued, and the delay found by the High Court ignored those steps. The recovery action was not left idle for the period assumed by the High Court, and the statutory proceedings could not be treated as barred on that basis.

Conclusion: The recovery proceedings were not time barred.

Final Conclusion: The High Court's order could not be sustained, and the statutory recovery process was permitted to proceed in accordance with law.

Ratio Decidendi: Withdrawal of a civil suit without liberty does not bar proceedings under a distinct statutory recovery mechanism when the withdrawal was to pursue that remedy and the statute preserves other available remedies.

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