https://www.taxtmi.com/caselaws?id=98099 In winding up, a liquidator may scrutinize a proved running-account debt to confirm that it reflects real indebtedness, but the claim cannot be expunged without specific evidence of fictitious entries, fraud, or a clandestine arrangement; on the records, the debt was upheld. Money advanced specifically for payment of wages and salaries attracted preferential treatment to the extent contemplated by the Companies Act, and the claimed amount was allowed. A security deposit made for due performance of agency obligations was treated as trust money, so it fell outside the divisible assets and retained preferential status. en-us Thu, 26 Mar 1964 00:00:00 +0530 Thu, 19 Jan 2012 12:02:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98099 In winding up, a liquidator may scrutinize a proved running-account debt to confirm that it reflects real indebtedness, but the claim cannot be expunged without specific evidence of fictitious entries, fraud, or a clandestine arrangement; on the records, the debt was upheld. Money advanced specifically for payment of wages and salaries attracted preferential treatment to the extent contemplated by the Companies Act, and the claimed amount was allowed. A security deposit made for due performance of agency obligations was treated as trust money, so it fell outside the divisible assets and retained preferential status. Case-Laws Companies Law Thu, 26 Mar 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98099