Limon had been crippled in an alleged gunfight with RAB two years ago.
Rahman said his statement was 'misrepresented' in the media. He had met Limon and his mother Henoara Begum on Sunday.
About the meeting, Limon told bdnews24.com that the NHRC chief had suggested the withdrawal of the lawsuit filed by his mother against six RAB men so that the elite force could drop the two cases against him.
When his attention was drawn to the statement, the NHRC Chairman told bdnews24.com: "I did not ask Limon's family to reach an agreement with RAB by withdrawing their case. It is completely false."
Rather, he added, his Commission was continuing talks with the Ministry of Home to free Limon from the RAB case.
He said Limon's family came to the Commission and wanted to know about the matter. "I told them the home ministry might demand withdrawing the case against RAB when calling off the two cases filed by RAB."
Rahman said the NHRC would advice the family if that situation arose.
Seventeen days after the Jhalakathi college student was injured in a said gunfight with RAB, his mother filed a case with Rajapur Police Station on Apr 10, 2011, accusing six RAB personnel of attempting to murder her son.
RAB had filed two cases with the Rajapur police against Limon and seven others under the Arms Act and another for obstructing official duty.
All the three cases are currently on trial at a Jhalakathi court.
In their final investigation report in the case, the police said the RAB personnel were 'innocent'.
Henoara filed a petition challenging the police investigation report that found no evidence against the elite force. A Jhalakathi court scrapped her plea.
Limon on Monday told bdnews24.com the NHRC chief had indeed given him the 'proposal'.
The NHRC chief had expressed deep frustration after Limon was injured and visited him in the hospital.
Limon hoped Rahman would side with justice.
Currently undergoing treatment at the capital's Gonoshasthaya Kendra, Limon wanted to meet Prime Minister Sheikh Hasina.
"I'd like to tell her that I am also a citizen of this country, that I, too, have the right to live freely," he said.
"RAB made me a handicap first and then snatched away my normal life filing false cases," he added.