Limitation for winding-up petition runs from sanction date, and a delayed filing beyond three years is time-barred.

A winding-up petition filed by the Registrar of Companies was held to be time-barred under Article 137 of the Limitation Act, 1963. The right to apply for winding up was treated as accruing on the date sanction for institution of the proceedings was obtained under section 439(5) of the Companies Act, 1956. Limitation therefore began on that date and expired three years later. As the petition was presented more than five years after the sanction, it could not be regarded as filed within time and was not entertainable.

---

---

Issues: Whether the winding-up petition filed by the Registrar of Companies was barred by limitation under Article 137 of the Limitation Act, 1963.

Analysis: The petition was presented more than five years after the sanction for institution of the winding-up proceedings had been obtained under section 439(5) of the Companies Act, 1956. Following the binding view that the right to apply for winding up accrues on the date of sanction, the period of limitation under Article 137 commenced from that date and expired three years thereafter. The subsequent presentation of the petition, therefore, could not be treated as within time.

Conclusion: The winding-up petition was barred by limitation and could not be entertained.

---