MAHARASHTRA STATE FIN.CORPN. vs ASHOK K. AGARWAL — C.A. No. 3727/1999

Summary of C.A. No. 003727/1999 Maharashtra State Financial Corporation v. Ashok K. Agarwal The Supreme Court dismissed the Corporation's appeal, upholding that its recovery application against the loan sureties was barred by limitation. The Court held that Article 137 of the Limitation Act (3-year period) applied, not Article 136 (12-year period for decree execution), because applications under Section 31 of the State Financial Corporation Act are not actual executions of civil court decrees but merely procedurally similar. Since the notice to sureties was issued in December 1991 and the application filed in January 1992—nearly nine years after the original borrower's liability crystallized in 1983—the claim was time-barred. This case analysis is maintained by casestatus.in based on publicly available court records.