https://www.taxtmi.com/caselaws?id=97799 Section 42 of the Travancore Chitties Act created a statutory first charge over chitty assets for payment of chitty debts, and the amount recoverable from a prized subscriber formed part of that charged fund. That priority was not displaced by liquidation of the foreman company, and neither the Companies Act nor the Kerala Insolvency Act permitted set-off where it would reduce the charged assets to the prejudice of chitty creditors. The ordinary creditors were therefore not entitled to set off their claims against the money due from them to the chitty, and the liquidator had to realise and apply the chitty assets first for that class of 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 Section 42 of the Travancore Chitties Act created a statutory first charge over chitty assets for payment of chitty debts, and the amount recoverable from a prized subscriber formed part of that charged fund. That priority was not displaced by liquidation of the foreman company, and neither the Companies Act nor the Kerala Insolvency Act permitted set-off where it would reduce the charged assets to the prejudice of chitty creditors. The ordinary creditors were therefore not entitled to set off their claims against the money due from them to the chitty, and the liquidator had to realise and apply the chitty assets first for that class of creditors. Case-Laws Companies Law Wed, 04 Nov 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97799