Registered mortgage evidence and winding up limitation rules sustained liability and kept the company's claim within time.

A registered mortgage deed and connected loan records can establish liability where they are executed in favour of the company in liquidation and remain unrebutted by evidence. Here, the respondents signed the deed, the account statement and related documents consistently supported the loan transaction, and the respondents led no evidence or effective challenge; liability was therefore fastened on them. A claim by a company in winding up is assessed by excluding the period from commencement of winding up to the winding up order, together with one further year thereafter. On that computation, the claim was within limitation. The application succeeded, with a decree for the claimed amount, interest and costs, and joint and several liability.

---

---

Issues: (i) Whether the respondents were liable under the registered mortgage deed and the connected loan documents for the amount claimed by the Official Liquidator. (ii) Whether the claim was barred by limitation in view of the winding up proceedings.

Issue (i): Whether the respondents were liable under the registered mortgage deed and the connected loan documents for the amount claimed by the Official Liquidator.

Analysis: The mortgage deed was registered, executed in favour of the company in liquidation, and bore the signatures of the respondents on each page. The supporting account statement, list of debtors, and notice documents consistently showed the loan transaction and the partial interest payment. The respondents denied liability but led no oral or documentary evidence, did not cross-examine the Official Liquidator's witness, and did not effectively challenge the documents. In those circumstances, the burden to displace the documentary record was not discharged.

Conclusion: The respondents were held liable for the amount claimed under the mortgage transaction, and this issue was decided against the respondents.

Issue (ii): Whether the claim was barred by limitation in view of the winding up proceedings.

Analysis: In computing limitation for a suit or application by or on behalf of a company in winding up, the period from commencement of winding up to the winding up order, together with one further year thereafter, is excluded. Applying that rule to the dates of the loan transaction, winding up petition, winding up order, and the application, the claim remained within time.

Conclusion: The claim was not barred by limitation, and this issue was decided against the respondents.

Final Conclusion: The application succeeded, and a decree was granted for the claimed amount with interest and costs, with the respondents held jointly and severally liable.

Ratio Decidendi: A registered mortgage deed and supporting account records may be relied upon to fasten liability when they remain unrebutted by evidence, and limitation for a claim by a company in winding up must be computed by excluding the statutorily protected period under the winding up regime.

---