The Kerala High Court has dismissed a writ appeal challenging a 2016 auction sale conducted by the Federal Bank, ruling that the time limit prescribed under Rule 68B of the Second Schedule to the Income Tax Act, 1961, does not apply to recovery proceedings under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB Act).

The Division Bench, comprising Justice Anil K. Narendran and Justice Muralee Krishna S. , held that the limitation for recovery proceedings is governed by Article 136 of the Limitation Act, 1963. Furthermore, the Court ruled that a party cannot raise new grounds in subsequent litigation that could have been raised earlier, citing the principle of constructive res judicata .

The primary legal issue was whether the auction was conducted in b

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