https://www.taxtmi.com/caselaws?id=96605 Cash advanced under a debenture may count as "cash paid to the company" where, in substance, the company receives the money as part of a genuine business transaction, even if part is applied to an existing debt or to secure continued trade supplies. The Court treated the arrangement as a whole and rejected a narrow reading that would exclude cash merely because it was earmarked for discharge of an antecedent liability. On that basis, the floating charge was valid to the extent of the advance, and the debenture was not invalid for want of qualifying cash. en-us Wed, 11 Jan 1933 00:00:00 +0530 Fri, 16 Feb 2018 11:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96605 Cash advanced under a debenture may count as "cash paid to the company" where, in substance, the company receives the money as part of a genuine business transaction, even if part is applied to an existing debt or to secure continued trade supplies. The Court treated the arrangement as a whole and rejected a narrow reading that would exclude cash merely because it was earmarked for discharge of an antecedent liability. On that basis, the floating charge was valid to the extent of the advance, and the debenture was not invalid for want of qualifying cash. Case-Laws Companies Law Wed, 11 Jan 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96605