Limitation for recovery of pending dues
G N Shaikh
(Querist) 02 December 2017
This query is : Resolved
Expertise Sir/Madam
I have a shed in MIDC waluj Aurangabad Maharashtra. In 2002 I apply for disconnection of water supply and on the same day MIDC disconnected. I had some arrear pending. Business activities were closed from 2003. Now I want NOC from MIDC water department. During 2002 to till date MIDC did not send any recovery notice and not take any action. Through RTI I got some documents from MIDC.I find that MIDC asked the collector to recover the pending dues as land revenue of Rs 30,000 from me in 2002. But until today collector also not take any action. Now dated 09/2017 when I apply to MIDC to issue a NOC and I am ready to pay Rs 30,000 as per recorded in collector office. I am shocked MIDC give me letter of pending dues of Rs 2,12,505/- on 09/11/2017.I am in hurry as I want to rent out my shed. Last 15-16 years business was closed I suffered a huge loss. I contact to collector office they asked to pay Rs 30,000 here and balance to MIDC.
I want to know one's MIDC handed over the rights to recover the due amount from defaulter then is MIDC still have the rights to recover over dues amount from me.
Is limitation act is applicable to collector and MIDC.
What action I can take or what I have to do and under which section of law. Your direction being an expert is valuable for me. Waiting for your reply.
Shaikh G N
Dr J C Vashista
(Expert) 03 December 2017
Although there is a limit of 3 years for recovery of dues yet government shall recover even older dues.
It would be better to meet the concerned Director MIDC especially accounts.
P. Venu 
(Expert) 04 December 2017
First of all ascertain the particulars of the enhanced amount over and above what has been referred to the district Collector for recovery under RR Act.
M V Gupta
(Expert) 05 December 2017
Limitation of 3 years from the date the amount became due applies to MIDC. As advised by the expert ascertain the details of the additional amount of Rs 2 lakhs and odd. From the facts narrated by u it appears that this amount is clearly time barred. Hence u may consider denying ur liability for the additional amount. So far as the 30,000/- is concerned as it is pending with the collector, limitation may not apply.
G N Shaikh
(Querist) 06 December 2017
Mr M V Gupta
Thank u sir for your valuable information. I will be gratefully if u can send some citation, under which act, section, and few references that limitation act is applicable to MIDC.
Guest
(Expert) 06 December 2017
Dear Mr. GN Shaikh,
Please don't get misled with the misconception about the limitation of recovery under the provisions of the Limitation Act. If you get misled merely in the name of the Limitation Act, you cannot guess to what extent you would be put at loss even by fighting for years together, which may even extend beyond your life to be faced by your legal heirs.
First of all, no limitation is applicable on any recovery due to be made in the name of land revenue. The case becomes settlement under the Land Revenue Act read with the Enforcement of Security Interest and Recovery of Debts Laws.
Secondly, even if the Collector is assigned the duty of collecting the debt money, as land revenue, the principal lender does not lose right to recover the amount of debt or to compound its case, if settled directly with the debtor.
Thirdly, if the MIDC is ready to accept its original amount of debt (Rs.30,000), where is the harm to request the MIDC to restore its facilities after deposit of Rs.30,000/- and request for moratorium in recovery of the interest amount or settlement with mutual discussions by waiver of part of interest under the powers of the MIDC authorities? Once the case is settled at the level of MIDC authorities, the MIDC will have to with draw the case for recovery of land revenue. OTHERWISE, YOU CANNOT EXPECT THE COLLECTOR TO WAIVE EVEN A SINGLE PENNY AT HIS LEVEL., as the office of the Collector would be bound to recover the whole amount in one lump sum even by making arrest through police department. NOT ONLY THAT, the Collectorate will also recover the additional cost costs of its as well as of the usage of the police force in addition tot he amount pertaining to the MIDC.
Rest depends upon your own wisdom, how to get the dispute settled.
BUT, be aware, you have to act wisely and to forget that Government dues can be waived off only by some special Government resolution, if made by the competent authority, as a matter of some policy decision, NOT through the existing laws.
M V Gupta
(Expert) 06 December 2017
yoiu have not indicated the nature of the additional amounts claimed by MIDC. If they relate to any rent chargeable then the period of limitation 3 years under Article 52 of Schedule I of the LimitaTion Act. If it is any other kind of sums for which there is no specific period prescribed, then under Article 113 THE PERIOD IS 3 YEARS FROM THE DATE WHEN THE RIGHT TO CLAIM THE AMOUNT ARISES.
M V Gupta
(Expert) 06 December 2017
In continuation of my above posting it may be clarified that MIDC being a statutory body (corporation) established under the Maharahstra Industrial Act, it is distinct from the Govt and amounts due to it are not Govt dues. But under the provisions of the Act they are recoverable as land revenue. This means that the corporation need not approach the civil court to recover sums due to it but can approach the Collector who will recover them by following the summary procedure prescribed under the Land Revenue code.
