https://www.taxtmi.com/caselaws?id=96624 In liquidation, surplus funds remaining after payment of principal debts must first satisfy creditors' claims for lawful interest before any distribution to preferential shareholders. The stated principle is that creditors are not treated as paid in full until interest on outstanding debts has been discharged, and that claim ranks ahead of preferential shareholders' entitlement. As to rate, the contractual rate is not binding; where a qualifying contractual rate exists, 6 per cent was treated as appropriate, and where no contract for interest existed, 4 per cent was considered sufficient. en-us Fri, 27 Oct 1933 00:00:00 +0530 Mon, 09 Jan 2012 18:07:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96624 In liquidation, surplus funds remaining after payment of principal debts must first satisfy creditors' claims for lawful interest before any distribution to preferential shareholders. The stated principle is that creditors are not treated as paid in full until interest on outstanding debts has been discharged, and that claim ranks ahead of preferential shareholders' entitlement. As to rate, the contractual rate is not binding; where a qualifying contractual rate exists, 6 per cent was treated as appropriate, and where no contract for interest existed, 4 per cent was considered sufficient. Case-Laws Companies Law Fri, 27 Oct 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96624