https://www.taxtmi.com/caselaws?id=98362 Bank overdraft advances drawn within the general borrowing limit and used to meet wages were treated as advances made for the statutory purpose of paying wages under section 319(4) of the Companies Act 1948. The court rejected a rigid requirement that the bank must exercise a separate discretion for each advance, holding instead that the question is whether the money was in fact advanced to enable the debtor to meet wage commitments. The provision was treated as a benevolent priority founded on subrogation. On the facts, the arrangement was directed to wages alone, so the bank ranked in priority. en-us Tue, 22 Nov 1966 00:00:00 +0530 Fri, 20 Jan 2012 12:56:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98362 Bank overdraft advances drawn within the general borrowing limit and used to meet wages were treated as advances made for the statutory purpose of paying wages under section 319(4) of the Companies Act 1948. The court rejected a rigid requirement that the bank must exercise a separate discretion for each advance, holding instead that the question is whether the money was in fact advanced to enable the debtor to meet wage commitments. The provision was treated as a benevolent priority founded on subrogation. On the facts, the arrangement was directed to wages alone, so the bank ranked in priority. Case-Laws Companies Law Tue, 22 Nov 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98362