In Brief
The Himachal Pradesh Financial Corporation sought to recover outstanding loans from Anil Garg under a special statute. After initially filing a civil money suit, the Corporation withdrew it to pursue recovery under the Himachal Pradesh Public Moneys (Recovery of Dues) Act, 1973, which provided a faster remedy. Garg challenged the recovery proceedings, arguing withdrawal of the suit barred further action and the claim was time-barred due to delay. The Supreme Court held that proceedings under the Act and civil suits are fundamentally different proceedings governed by different laws. Withdrawal of a suit does not bar statutory recovery proceedings, which are independent remedies. The Court allowed the appeal and directed the auction proceedings to proceed.
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