250 SECRETARIAL PRACTICE 
admissible to proof [s. 261]. (See Bankruptcy Act, 1914, s. 30, 
as to the debts which are provable in bankruptcy and therefore 
in the winding up of an insolvent company.) It should be 
oorne in mind that only debts which are legally recoverable 
can be provided for in a winding up, and if a liquidator admits 
and pays a claim, which is merely a moral obligation, however 
strong, on the company, he commits a misfeasance and may 
be compelled to make good the amount so paid, at any rate so 
far as the true creditors have been damaged thereby [Home & 
Colonial Insurance Co. (1930), 1 Ch. 102]. 
Rule go of the Rules of 1929 provides for the proof of debts 
oy affidavit, and by Rule 93 the affidavit is required to state 
whether the creditor is or is not a secured creditor. Most of 
the Rules from go to 108 contain further regulations as to the 
proof of debts which are applicable to voluntary winding up. 
When the proofs have all been lodged, the liquidator must 
examine them, and in writing admit or reject each, either in 
whole or in part, or he may require further evidence in sup- 
port of it. If he rejects a proof he must notify to the creditor 
in writing the grounds of his rejection [Rule 105]. Any 
creditor dissatisfied with the decision of the liquidator may 
apply to the Court within twenty-one days, and the Court 
may reverse or vary the decision [Rule 106]. Should the 
liquidator himself, after admitting a proof, consider that 
it has been improperly admitted, he may apply to the Court, 
after notice to the creditor, to expunge the proof or reduce 
its amount [Rule 107]. A similar application may be made 
by any creditor or contributory [Rule 108]. 
In due course the liquidator will have a complete list of 
claims, of which some may be disputed. Disputed claims 
may be dealt with by the liquidator in various ways. He 
may compromise any claim with the sanction required by 
s. 248 (1), or he may apply to the Court, under s. 252, to 
adjudicate upon any disputed claim. Or he may leave the 
creditor to apply to the Court to adjudicate, or to bring an 
action to enforce the claim. The position of the liquidator 
in the matter of applying for a stay of any such action has 
already been dealt with above (see p. 238). In exceptional 
cases, where the disputed claims are likely to be numerous, the 
method of procedure is open to the liquidator of applying 
to the Court, under s. 252, for an order for an inquiry as to 
who are the creditors of the company. The effect of such 
an order is that all claims are formally proved in chambers, 
and disputed claims adjudicated upon where necessary by the 
Court. If the liquidator is in doubt as to whether he has a 
complete list of claims and desires to make a distribution. he