In Brief
The Himachal Pradesh Financial Corporation (HPFC) had advanced loans to the respondent for purchase of a truck and establishment of an industry. After the respondent defaulted, the HPFC withdrew a money suit and initiated recovery proceedings under the Himachal Pradesh Public Moneys (Recovery of Dues) Act, 1973. The High Court set aside the recovery proceedings, holding that withdrawal of the suit without liberty barred fresh proceedings and that the claim was time barred. The Supreme Court held that proceedings under the Act (recovery as arrears of land revenue by executive) are fundamentally different from civil suits and are not bound by the withdrawal limitations of the CPC. The Court distinguished Sarguja Transport, held the proceedings were not time barred (certificate issued in 1994), and reversed the High Court's order, allowing the recovery proceedings to proceed."
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