https://www.taxtmi.com/caselaws?id=96713 Whether debenture security extends to lease income was resolved by applying the principle that a security confined to specified assets (block and machinery) does not, on crystallisation, create proprietary rights to the usufruct or lease proceeds; accordingly the debenture-holders were denied any share of lease receipts. Whether the judge's exercise of discretion under section 234(1)(i) was unreasonable was assessed by reference to statutory distinction between automatic priority classes and discretionary relief; the court found practical reasons for ordering payment in full to certain non-statutory-priority creditors and upheld that discretionary order. en-us Thu, 07 May 1936 00:00:00 +0530 Tue, 10 Jan 2012 15:29:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96713 Whether debenture security extends to lease income was resolved by applying the principle that a security confined to specified assets (block and machinery) does not, on crystallisation, create proprietary rights to the usufruct or lease proceeds; accordingly the debenture-holders were denied any share of lease receipts. Whether the judge's exercise of discretion under section 234(1)(i) was unreasonable was assessed by reference to statutory distinction between automatic priority classes and discretionary relief; the court found practical reasons for ordering payment in full to certain non-statutory-priority creditors and upheld that discretionary order. Case-Laws Companies Law Thu, 07 May 1936 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96713