Late winding-up claims are usually barred by laches once accounts are written up, absent special circumstances.

In winding-up proceedings, claims must be pursued with reasonable expedition and are ordinarily liable to rejection for laches if lodged after the accounts have been written up. The claim was required to be proved by affidavit under the applicable rule, and a claim unsupported in that form was treated as defective. The note adds that, although delayed claims are generally too late once accounts are finalised, a claim may still be entertained in special circumstances where the official liquidator has examined it, found it substantially valid, and can authorise payment without difficulty.

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Issues: Whether a belated claim lodged after the advertised date in a winding-up could nevertheless be allowed, and the extent to which delay bars such a claim once the accounts have been written up.

Analysis: A winding-up must proceed with reasonable expedition, and claims cannot remain open-ended until the very end of dissolution. Rule 859 of the Sind Chief Court Rules required proof of debt by affidavit, and the claim before the Court had not been supported in that manner. Ordinarily, a claim made after the accounts have been written up would be too late and liable to rejection on grounds of laches. However, in the special circumstances of the case, the official liquidator had in fact inquired into the claim, found it substantially valid, and could allow payment without difficulty.

Conclusion: The claim was allowed, but it was affirmed that delayed claims in winding-up should be rejected on grounds of laches once the accounts have been written up.

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