Unsecured creditor claims in liquidation must be proved before the official liquidator; section 446(2)(b) is unavailable for recovery.

An unsecured creditor of a company in liquidation must prove the debt before the official liquidator under section 528 of the Companies Act, 1956, read with the Companies (Court) Rules, 1959. The winding-up scheme provides a special process for admission, decision, appeal, and listing of claims, and that procedure governs unsecured debt claims. Section 446(2)(b) is not available to such a creditor for direct recovery, as that general remedy is reserved for situations where proof before the liquidator is not the applicable route, including claims by secured creditors or claims against third parties on behalf of the company.

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Issues: Whether an unsecured creditor of a company in liquidation can maintain a petition under section 446(2)(b) of the Companies Act, 1956 for recovery of the debt, or whether the creditor is confined to proving the claim before the official liquidator under section 528 of the Act and the Companies (Court) Rules, 1959.

Analysis: The statutory scheme for winding up provides a special procedure for admission and proof of debts against the company. Claims are to be proved before the official liquidator under section 528, with the manner of proof regulated by the Companies (Court) Rules, 1959, including the provisions relating to decision on claims, appeal, and preparation of the creditors' list. In that setting, the general remedy under section 446 is not available to an unsecured creditor, since that provision is intended to operate where proof before the liquidator is not available, such as in the case of a secured creditor or a claim against a third party on behalf of the company.

Conclusion: A petition by an unsecured creditor under section 446(2)(b) was held to be not competent, and the creditor's remedy lay only in proving the debt before the official liquidator under section 528 and the relevant rules.

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