Limitation exclusion for winding-up proceedings applies to both the pre-order period and the post-order year, keeping the claim timely.

Exclusion of limitation during winding-up proceedings and the post-winding-up year applies to the aggregate of both periods when computing limitation for suits instituted in the name or on behalf of a company in liquidation; the court rejected reading the provision as excluding only the post-winding-up year. Applying the full excluded period to the stated dates, the official liquidator's claim was found within time. The court emphasised that pleadings filed as plaints must expressly plead and particularise facts establishing entitlement to the extended limitation period when relying on the statutory exclusion.

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Issues: Whether the official liquidator's claim for Rs. 9,901 is barred by limitation under the facts of the case.

Analysis: The Court examined Section 458A of the Companies Act, 1956 which mandates that, for suits or applications in the name or on behalf of a company being wound up, the period from the commencement of the winding-up proceedings to the date of the winding-up order (both inclusive) and a period of one year following the winding-up order are to be excluded when computing limitation. The Court interpreted the provision to mean the aggregate of both periods is to be excluded in computing the period of limitation and rejected the submission that only the one-year period following the winding-up order is to be excluded. Applying these exclusions to the dates before the Court (including the cheque dated 11 September 1974, presentation of the winding-up petition on 10 July 1974, and winding-up order on 8 August 1975), the Court found that when the full excluded period is applied the claim falls within time. The Court also noted procedural requirements that the application, being in substance a plaint, must include particulars establishing timeliness when relying on an extended period of limitation.

Conclusion: The claim is not barred by limitation; decree for Rs. 9,901 will be entered in favour of the official liquidator against the respondent, with costs.

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