1922 (1) TMI 8 - HC - Companies Law

Summary

The High Court of Lahore ruled that an application for compensation under Section 235 of the Indian Companies Act VII of 1913 is subject to a limitation period governed by Article 36 of the Limitation Act, not Article 120. The court held that the cause of action for compensation for misfeasance arises from the date of the misfeasance, not the date of winding up. Therefore, the application made more than two years after the misfeasance was time-barred. The court accepted the appeal, set aside the District Judge's order, and dismissed the respondent's application.