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Interpretation of Section 160 of the Companies Act, 1913 regarding the liability of legal representatives of a deceased contributory in a company's liquidation proceedings. Analysis: The judgment involves a dispute where the assignees seek an order against the respondent, as the legal representative of a deceased contributory, for payment of the amount owed by the deceased. The key issue revolves around the interpretation of Section 160 of the Companies Act, 1913. The court examines the liability of legal representatives of a deceased contributory in the context of liquidation proceedings. The court emphasizes that the section contemplates the liability of legal representatives even if the contributory dies before being placed on the list of contributories. It stipulates that legal representatives and heirs shall be liable to contribute to the assets of the company. The court highlights that the liability of legal representatives arises in the due course of administration, making them contributories accordingly. The court delves into the procedural aspects of enforcing the liability of legal representatives under Section 160. It notes that the proper procedure for the company or liquidator to enforce payment against legal representatives is through proceedings for the administration of the deceased's estate, rather than seeking a personal order for payment. The court emphasizes that the liability of legal representatives is limited to the course of administration and does not justify a direct order for payment against them. The judgment clarifies that the section mandates the recovery of amounts through the administration of the deceased's estate, rather than individual liability. The judgment distinguishes a previous decision where it was argued that an order against a deceased contributory was void. The court highlights that the previous decision did not consider the specific form of the order as outlined in Section 160. Consequently, the court dismisses the current application, stating that the assignees should follow the procedure under Section 160 to recover the amount in the due course of estate administration. As the application fails on a legal point not covered by precedent, the court refrains from awarding costs to either party, ensuring fairness in the legal process. In conclusion, the judgment clarifies the obligations and procedures concerning the liability of legal representatives of a deceased contributory in company liquidation proceedings. It underscores the importance of adhering to the statutory provisions outlined in the Companies Act, 1913, and emphasizes the proper course of action for enforcing such liabilities in the context of estate administration.
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