https://www.taxtmi.com/caselaws?id=96670 Money recovered by liquidators from avoiding a preferential payment was treated as a statutory recovery for the benefit of creditors generally, not as a proprietary asset of the company when the debenture security crystallised. Because the payment had already left the company's property, the recovered sum was not subject to the debenture charge and did not become part of the secured creditor's general security. The court therefore held that the recovery was impressed with a trust for distribution among creditors and rejected the secured creditor's claim to the fund in favour of the liquidators. en-us Tue, 29 Jan 1935 00:00:00 +0530 Tue, 10 Jan 2012 12:26:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96670 Money recovered by liquidators from avoiding a preferential payment was treated as a statutory recovery for the benefit of creditors generally, not as a proprietary asset of the company when the debenture security crystallised. Because the payment had already left the company's property, the recovered sum was not subject to the debenture charge and did not become part of the secured creditor's general security. The court therefore held that the recovery was impressed with a trust for distribution among creditors and rejected the secured creditor's claim to the fund in favour of the liquidators. Case-Laws Companies Law Tue, 29 Jan 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96670