https://www.taxtmi.com/caselaws?id=96886 A cash security deposit paid under an agency contract was treated as trust money rather than a debt where the agreement required the deposit to be retained for the agency term. The court held that a provision for interest on the deposit, and a limited contractual right to adjust claims against it in certain contingencies, did not by themselves create a debtor-creditor relationship or permit the company to use the money for its own purposes. Because the contract did not expressly or by necessary implication exclude a fiduciary character, the depositor was entitled to recover the sum with contractual interest in priority to unsecured creditors on liquidation. en-us Fri, 28 Aug 1942 00:00:00 +0530 Wed, 11 Jan 2012 18:09:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96886 A cash security deposit paid under an agency contract was treated as trust money rather than a debt where the agreement required the deposit to be retained for the agency term. The court held that a provision for interest on the deposit, and a limited contractual right to adjust claims against it in certain contingencies, did not by themselves create a debtor-creditor relationship or permit the company to use the money for its own purposes. Because the contract did not expressly or by necessary implication exclude a fiduciary character, the depositor was entitled to recover the sum with contractual interest in priority to unsecured creditors on liquidation. Case-Laws Companies Law Fri, 28 Aug 1942 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96886