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2024 (5) TMI 458 - SUPREME COURTRecovery of time-barred debt - extinguishment of debt or not - Use of the Haryana Public Moneys (Recovery of Dues) Act, 1979, and the State Financial Corporation Act, 1951, for recovering time-barred debts. - HELD THAT:- While the Court focused on the implication of a notification under Section 71 of the Kerala Revenue Recovery Act whereunder the Government could declare the Act applicable to any institution, the attention of the Court in STATE OF KERALA & ORS. VERSUS V.R. KALLIYANIKUTTY & ANR. [1999 (4) TMI 609 - SUPREME COURT] was not drawn to the powers envisaged under the State Financial Corporations Act which were also applicable to the recovery of debts in Kerala. As noticed above, the statement of objects and reasons of the State Financial Corporations Act refers to providing State Financial Corporations with ‘special privileges in the matter of enforcement of claims against borrowers’. This Court in V.R. Kallliyanikutty held that the words ‘amounts due’ occuring in the Kerala Revenue Recovery Act would only include legally recoverable debts i.e. debts which are not time-barred. The Court in K.C. Ninan [2023 (5) TMI 1251 - SUPREME COURT], after a comprehensive analysis of the scheme of the Electricity Act, held that the power to initiate proceedings to recover the electricity dues was independent of the power to disconnect electrical supply. Thereafter, the Court noticed the decision in V.R. Kalliyanikutty and concluded that statute of limitation only barred a remedy, while the right to recover the loan through ‘any other suitable manner provided’ remains untouched. Having so held, the Court rejected the argument of the auction purchasers and concluded that the bar of limitation under Section 56(2) of the Electricity Act would only restrict the remedy of disconnection under Section 56 of the Electricity Act and that the Electric Utilities were entitled to reocver electricity arrears through civil remedies or in exercise of its statutory power. Thus, for a comprehensive consideration and an authoritative pronouncement after taking into account all aspects, including those dealt with hereinabove, the matter needs to be placed before the Hon’ble Chief Justice of India to constitute an appropriate three-judge bench. Let the papers along with this order be placed before Hon’ble the Chief Justice of India for seeking appropriate directions from His Lordship, in this regard.
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