Limitation in company winding-up claims turns on relation back to petition date, keeping a creditor's debt admissible.

In company winding-up proceedings, a creditor's proof of debt was held to be governed by insolvency principles, so the claim related back to the date of presentation of the winding-up petition. Because the petition had been presented before the debt became time-barred, the Limitation Act explanation dealing with institution of suits against a company in winding up did not control the proof of the claim in the company court. The claim was therefore within time and admissible.

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Issues: Whether a creditor's claim in company winding-up proceedings was within limitation when the winding-up petition had been presented before the debt became time-barred, and whether the claim should relate back to the date of presentation of the petition.

Analysis: Under the Companies Act provisions governing insolvent companies, the law of insolvency applies to the proof of debts. The corresponding insolvency rule makes the adjudication order relate back to the date of presentation of the petition, and the same principle was held applicable to winding up under the Companies Act because a winding up is deemed to commence on presentation of the petition. The Limitation Act explanation concerning the date of institution of a suit against a company in winding up was held to concern a different situation and not to control the proof of a claim in the company court. The claim was not time-barred on the date of presentation of the winding-up petition and therefore remained admissible.

Conclusion: The claim was within time and had to be admitted.

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