https://www.taxtmi.com/caselaws?id=97943 In winding up, reimbursement for costs paid by a petitioner did not attract preferential status merely because the liability arose in litigation involving the company. The HC held that the statutory provision invoked did not extend to the claim, and the payment did not create a trust fund or fiduciary priority in favour of the petitioner. The claimant could not stand in a better position than the decree-holder, whose costs claim would rank only as an ordinary unsecured debt. The amount paid was therefore admitted as a provable debt, but only as an ordinary creditor's claim, without priority over other unsecured creditors. en-us Fri, 16 Mar 1962 00:00:00 +0530 Wed, 18 Jan 2012 16:29:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97943 In winding up, reimbursement for costs paid by a petitioner did not attract preferential status merely because the liability arose in litigation involving the company. The HC held that the statutory provision invoked did not extend to the claim, and the payment did not create a trust fund or fiduciary priority in favour of the petitioner. The claimant could not stand in a better position than the decree-holder, whose costs claim would rank only as an ordinary unsecured debt. The amount paid was therefore admitted as a provable debt, but only as an ordinary creditor's claim, without priority over other unsecured creditors. Case-Laws Companies Law Fri, 16 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97943