In Brief
Jignesh Shah and others, shareholders of La-Fin, challenged a winding up petition filed by IL&FS Financial Services. The dispute concerned a 2009 share purchase agreement and a letter of undertaking. IL&FS exercised its option to sell shares in August 2012, which La-Fin refused to purchase. IL&FS filed a suit for specific performance in June 2013, and later a winding up petition on 21 October 2016. The Supreme Court held that the winding up petition was time-barred under Article 137 of the Limitation Act, as it was filed more than three years after the cause of action arose in August 2012. The Court ruled that a suit for recovery, being a separate remedy, does not extend the limitation period for a winding up petition.
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