Late proof of debt may still be considered against undistributed assets, though prior dividends cannot be disturbed.

A creditor who files proof after the time fixed by the Court is not wholly barred from relief under Rule 177 of the Companies (Court) Rules, 1959; the delay mainly prevents participation in dividends already declared and distributed, while claim may still be considered against assets remaining with the Liquidator. The omission to first approach the Official Liquidator does not make the application premature, because Rule 177 itself contemplates an application to the Court for relief. The substantive proof of debt remains for determination by the Official Liquidator according to law.

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Issues: Whether a creditor whose proof was filed long after the time fixed could still seek relief under Rule 177 of the Companies (Court) Rules, 1959, whether the omission to approach the Official Liquidator first rendered the application premature, and whether the prior declaration of dividend barred consideration of the claim.

Analysis: A creditor is not excluded altogether merely because proof is filed after the time fixed by the Court. Under the scheme of the Companies Act and the Rules, the consequence of delay is exclusion only from participating in distributions already made before proof is lodged. Rule 177 permits the Court to grant relief to a creditor who has not filed proof within time, and Rule 178 confirms that such creditor cannot disturb dividends already declared but may be paid out of assets still available with the Liquidator. The Court also held that the application was not premature merely because the claimant had not first approached the Official Liquidator, since Rule 177 itself contemplates an application to the Court for relief. The question whether the claim was substantively proved was left for adjudication by the Official Liquidator.

Conclusion: The belated application was maintainable, the claimant could seek proof against undistributed assets, and the Official Liquidator was directed to adjudicate the debt according to law.

Ratio Decidendi: A creditor who fails to prove within the time fixed by the Court may still be permitted to prove before final distribution, but cannot disturb dividends already paid.

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