Vs.

Judges: Mrs. Sujata V. Manohar, D.P. Mohapatra & R.C. Lahoti, JJ.

Date of Judgment: Jan 04, 1999

Section 70 (3), 71 with SRO 797/79 and 851/79 and Constitution – Art. 14 Recovery of dues by Banks and Financial Corporations – Speedy recovery – Whether time barred debts also covered -Right of person to sue for recovery of payment made under protest – If protection of limitation not available Held that speedy recovery under the Act does not bar the plea of limitation, where payment has been made under protest and debtor sues for recovery of such payment.

Under Sub-section (3) of section 70, the person making a payment under protest shall have the right to institute a suit for the refund of the whole or part of the sum paid by him under protest. Under section 70(3) a person who has paid under protest can file a suit for refund of the amount wrongly recovered. In law he would be entitled to submit in the suit that the claim against which the recovery has been made is time-barred. When the right to file a suit under Section 70(3) is expressly preserved, there is a necessary implication that the shield of limitation available to a debtor in a suit is also preserved. (Paras 10,11.)