https://www.taxtmi.com/caselaws?id=96858 For the statutory exception to apply, the court looks to the substance of the debenture transaction and not its form. Where the money was provided by a third party, the company's bank account operated only as a conduit, and the arrangement was designed to prefer selected creditors rather than confer a genuine commercial benefit on the company, the cash is not treated as paid to the company within section 266 of the Companies Act 1929. On those facts, the floating charge was invalid. en-us Wed, 26 Mar 1941 00:00:00 +0530 Wed, 11 Jan 2012 16:31:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96858 For the statutory exception to apply, the court looks to the substance of the debenture transaction and not its form. Where the money was provided by a third party, the company's bank account operated only as a conduit, and the arrangement was designed to prefer selected creditors rather than confer a genuine commercial benefit on the company, the cash is not treated as paid to the company within section 266 of the Companies Act 1929. On those facts, the floating charge was invalid. Case-Laws Companies Law Wed, 26 Mar 1941 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96858