https://www.taxtmi.com/caselaws?id=97799 Sums due from prized subscribers constitute chitty assets subject to the statutory charge created by section 42 of the Travancore Chitties Act, and that third party charge prevents private set off by prized subscribers against ordinary debts to the foreman company to the prejudice of chitty creditors. The legal effect is that such chitty assets must be realised by the liquidator and proceeds applied first in satisfaction of the chitty creditors' claims; ordinary creditors cannot defeat the charge by asserting set off. Any surplus remaining after satisfying the charge may, in principle, be available for set off or distribution to general creditors. en-us Wed, 04 Nov 1959 00:00:00 +0530 Wed, 18 Jan 2012 11:21:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97799 Sums due from prized subscribers constitute chitty assets subject to the statutory charge created by section 42 of the Travancore Chitties Act, and that third party charge prevents private set off by prized subscribers against ordinary debts to the foreman company to the prejudice of chitty creditors. The legal effect is that such chitty assets must be realised by the liquidator and proceeds applied first in satisfaction of the chitty creditors' claims; ordinary creditors cannot defeat the charge by asserting set off. Any surplus remaining after satisfying the charge may, in principle, be available for set off or distribution to general creditors. Case-Laws Companies Law Wed, 04 Nov 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97799