Winding-up liability and payment to Official Liquidator: prior payment discharged the contributory's obligation, barring double recovery.

A contributory's winding-up liability is a statutory debt enforceable by calls, but payment made to the Official Liquidator in his official capacity, after notice of liability and before the formal call order, discharged that liability in the circumstances. The Court treated the payment as effective where there was no clear proof that the company was deprived of the benefit of the money or that it was properly traced and misapplied. It was therefore unjust to require the contributory to pay the same amount again merely because the money had not been deposited in the bank account later specified for calls.

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Issues: Whether a contributory who paid the amount demanded by the Official Liquidator in his official capacity before the formal call order was made could again be compelled to pay the same amount under the subsequent order for payment of calls.

Analysis: On the winding up, the liability of a contributory is a statutory liability attaching to an existing debt, though payable when calls are made for enforcing it. The payment in question was made to the Official Liquidator acting as the Court's officer, after notice of liability and before the formal order enforcing the call. The Court found no material showing that the company had been deprived of the benefit of the payment or that the money had been properly traced and misapplied. In these circumstances, it was not just to treat the appellant as still liable merely because the payment had not been made into the bank account specified in the later order.

Conclusion: The appellant's payment to the Official Liquidator discharged the liability in the circumstances, and he could not be compelled to pay the same amount again.

Ratio Decidendi: Where a contributory pays the amount demanded by the Official Liquidator in his official capacity towards an existing winding-up liability, the Court should not enforce the same liability a second time absent clear proof that the company did not receive the benefit of that payment.

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