R F C Vs. ANIS AHMED HABIB KHAN

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THE Rajasthan State Financial Corporation has challenged the order dated 19th Dec. , 2002 passed by the court of Addl. District Judge NO. 1, Chittorgarh in Misc. Application Case No. 67/1995 by which the learned Civil court rejected the appellant's-applicant's application filed under Section 31 of the State Financial Corporation Act, 1951 (hereinafter referred to as the Act of 1951) on the ground of bar of limitation. It will be worthwhile to mention here that the appellant's application under Section 31 of the Act of 1951 was rejected as barred by time that too by accepting the period of limitation as 12 years from the loan amount becoming due after 12 months from the date of disbursement of loan by RFC to the borrower because of the reason that there was condition that the loan will become due after 12 months from the date of disbursement of loan to the borrower. However, the respondents have raised yet another objection that the trial court committed error of law by accepting the 12 years as period of limitation for entertaining the appellant's application filed under Section 31 of the Act of 1951.

(3.) THEREFORE, the period of limitation for making an application under Section 31 of the Act of 1951 can be only three years and the Hon'ble Supreme Court has already laid down that for proceedings under Section 31, there is no decree in existence, which is sought to be executed and, therefore, the period of limitation can be which is provided for any application, which may be moved before the civil court.