CHANBALI STEAMER SERVICE CO LTD Vs. STATE

JUDGEMENT

(1.) This is an application on a chamber summons taken out by Lloyds Bank Ltd., against the Liquidator, Chandbali Steamer Service Co. Ltd., (in Liquidation) for an order upon the Official Liquidator of the company to admit the claim of the petitioner as an ordinary creditor for the sum of Rs. 36,954.91 np, and for necessary amendment of the list of creditors already settled by this court.

(2.) An interesting point of limitation of considerable importance is raised by the Liquidator on this application. It is contended by the Official Liquidator that the claim of the Lloyds Bank is already barred by limitation. If Lloyds Bank Ltd., were to institute a suit to enforce this claim today it will undoubtedly be barred by limitation. In such circumstances, the question is can the court direct the Liquidator to admit the claim. No Indian case has answered the point.

(3.) The claim of the applicant Bank arises out of the moneys lent and advanced to the company on overdraft account which continued till October-November, 1954. The company went into liquidation in March, 1955. The applicant Lloyds Bank did not put forward its claim before the Liquidator at any stage until 5-11-1958, which was about four years subsequent to the last transaction in the overdraft account and about more than three years after the date of liquidation.