https://www.taxtmi.com/caselaws?id=98983 Money advanced for a specific and restricted purpose, with an obligation to use it only for payment to the mills and to return it if the arrangement ceased, was treated as trust money rather than part of the company's general assets. The court held that the agreement showed segregation of the fund, limited dominion in the company, and a fiduciary duty to apply the money only for the stated purpose. When the underlying agency arrangement failed, a secondary trust arose in favour of the lender, giving him preferential repayment from the liquidator ahead of the general body of creditors. en-us Thu, 21 Sep 1972 00:00:00 +0530 Tue, 24 Jan 2012 17:34:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98983 Money advanced for a specific and restricted purpose, with an obligation to use it only for payment to the mills and to return it if the arrangement ceased, was treated as trust money rather than part of the company's general assets. The court held that the agreement showed segregation of the fund, limited dominion in the company, and a fiduciary duty to apply the money only for the stated purpose. When the underlying agency arrangement failed, a secondary trust arose in favour of the lender, giving him preferential repayment from the liquidator ahead of the general body of creditors. Case-Laws Companies Law Thu, 21 Sep 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98983