https://www.taxtmi.com/caselaws?id=98134 A bank's claim in winding up could rank as preferential where cheques were met under an agreed wages-account arrangement, because the resulting indebtedness was treated as an advance made for paying wages. A debit to an overdrawn account did not, by itself, amount to payment by the company to the bank, and transferring debit entries from the current account to the wages account did not change the character of the debt. Later credits to the current account were applied under Clayton's case, reducing the sum transferable, but the two accounts were not treated as one amalgamated account. The preferential claim succeeded for the qualifying wage-related indebtedness. en-us Tue, 30 Jun 1964 00:00:00 +0530 Thu, 19 Jan 2012 12:56:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98134 A bank's claim in winding up could rank as preferential where cheques were met under an agreed wages-account arrangement, because the resulting indebtedness was treated as an advance made for paying wages. A debit to an overdrawn account did not, by itself, amount to payment by the company to the bank, and transferring debit entries from the current account to the wages account did not change the character of the debt. Later credits to the current account were applied under Clayton's case, reducing the sum transferable, but the two accounts were not treated as one amalgamated account. The preferential claim succeeded for the qualifying wage-related indebtedness. Case-Laws Companies Law Tue, 30 Jun 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98134