https://www.taxtmi.com/caselaws?id=98115 Section 322 of the Companies Act, 1948 was construed to include subsequent cash advances made by a bank on the faith of an existing floating charge, even without an express obligation to advance further funds. The phrase "in consideration for" was read broadly, so later overdraft continuations could fall within the statutory exception. In a running bank account, post-charge credits were also appropriated in the ordinary way to the earliest outstanding debits unless a contrary appropriation was shown. On that basis, pre-charge indebtedness was reduced first, and the floating charge remained valid to the extent supported by the subsequent advances. en-us Fri, 05 Jun 1964 00:00:00 +0530 Fri, 16 Feb 2018 11:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98115 Section 322 of the Companies Act, 1948 was construed to include subsequent cash advances made by a bank on the faith of an existing floating charge, even without an express obligation to advance further funds. The phrase "in consideration for" was read broadly, so later overdraft continuations could fall within the statutory exception. In a running bank account, post-charge credits were also appropriated in the ordinary way to the earliest outstanding debits unless a contrary appropriation was shown. On that basis, pre-charge indebtedness was reduced first, and the floating charge remained valid to the extent supported by the subsequent advances. Case-Laws Companies Law Fri, 05 Jun 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98115