Facts: M/s Khemka Ispat Limited took a term loan from Haryana State Industrial and Infrastructure Development Corporation Ltd. (HSIDC Ltd.), guaranteed by the appellants. After default and the company being declared sick, HSIDC Ltd. issued recovery notices under the Recovery of Dues Act, 1979. The appellants challenged the recovery notice arguing that the debt was time-barred under the Limitation Act, 1963.

Issue: Whether debts that are time-barred under the Limitation Act, 1963, can still be recovered using remedies under special statutes like the Haryana Public Moneys (Recovery of Dues) Act, 1979.

Observation: The Supreme Court affirmed that a time-barred debt under the Limitation Act can still be recovered under special statutes such as the Haryana Public Moneys (Recovery of Dues) Act. The Court noted that while the Limitation Act bars the remedy in civil suits, it does not extinguish the debt itself, which can still be enforced through alternative statutory mechanisms.