https://www.taxtmi.com/caselaws?id=96589 A cash deposit under a commercial agency agreement was not held on trust because the agreement permitted the company to use the funds, provided for interest, and required earmarking only upon a contingency that never occurred; absent segregation or clear directions to keep the money separate, the deposit did not form an identifiable trust fund. The court treated the arrangement as creating a debtor-creditor relationship rather than a fiduciary trust, and held the depositor is not entitled to preferential payment in liquidation and ranks as an ordinary unsecured creditor. en-us Fri, 04 Sep 1931 00:00:00 +0530 Mon, 09 Jan 2012 15:58:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96589 A cash deposit under a commercial agency agreement was not held on trust because the agreement permitted the company to use the funds, provided for interest, and required earmarking only upon a contingency that never occurred; absent segregation or clear directions to keep the money separate, the deposit did not form an identifiable trust fund. The court treated the arrangement as creating a debtor-creditor relationship rather than a fiduciary trust, and held the depositor is not entitled to preferential payment in liquidation and ranks as an ordinary unsecured creditor. Case-Laws Companies Law Fri, 04 Sep 1931 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96589