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Application for admission of claim by Lloyds Bank Ltd. as an ordinary creditor against the liquidator, raising the question of limitation and the court's authority to direct the liquidator to admit the claim. Analysis: The judgment pertains to an application by Lloyds Bank Ltd. against the liquidator, seeking admission of its claim as an ordinary creditor. The liquidator contended that the claim was time-barred, as it was not presented until November 1958, several years after the last transaction with the company in liquidation. The bank attributed the delay to efforts to recover the sum from bills held as security, which the government, involved in a set-off claim against the company, did not pay. The court addressed the issue of limitation under Section 3 of the Limitation Act, emphasizing that the statutory explanation did not apply in this scenario. The court highlighted that the liquidator, as a trustee under the Companies Act, was subject to specific duties and trusts, preventing the claim from being time-barred. The judgment referred to the decision in Hansraj Gupta v. Dehra Dun Mussourie Electric Tramway Co. Ltd., establishing that a claim not initiated by presenting a plaint could still be considered within the limitation period. It further cited English cases, including In re General Rolling Stock Company, to support the principle that the liquidator acts as a trustee, ensuring assets are used to settle existing liabilities at the time of liquidation. The court concluded that a claim not time-barred at the date of the winding-up order could be entertained by the liquidator and the court, subject to conditions to safeguard the fairness of the liquidation process. Regarding the application's limitation period, the court deliberated on the applicability of Article 181 of the Limitation Act, ultimately determining that even if it applied, the right to seek relief arose when the liquidator rejected the claim, falling within the limitation period. Consequently, the court directed the liquidator to admit the bank's claim as an ordinary creditor, subject to satisfactory proof by the bank. The judgment also specified that this decision would not impact prior dividends or commitments made by the liquidator. Finally, the court ordered the applicant to bear the costs of the application and granted a certificate to the liquidator's attorney.
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