In Brief
IL&FS sought to wind up La-Fin on the basis of an alleged debt arising from a Letter of Undertaking concerning a share purchase. IL&FS filed a suit for specific performance in 2013 (within limitation) but filed the winding up petition only in October 2016, more than three years after the default date of August 2012. The Supreme Court held that the petition was time-barred under Article 137 of the Limitation Act. The Court ruled that the filing of a separate suit for specific performance does not toll the limitation period for a winding up petition, as they are distinct remedies. Section 238A of the Code applies retrospectively, so even after transfer to the NCLT, the time-barred petition could not be revived. The petition was dismissed as time-barred.
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