https://www.taxtmi.com/caselaws?id=103221 Employees' contribution deducted from wages under the Employees' State Insurance Act is trust money and must be kept separate from the employer's general assets. The court applied the trust principle to hold that failure to segregate the deducted amount does not change its character, and the beneficiary can trace it. A secured creditor may realise its security, but recovery against the company's assets cannot defeat the statutory claim of the Employees' State Insurance Corporation. The sale proceeds must therefore be earmarked to the extent of the deducted contribution due to protect the statutory dues. en-us Wed, 13 Apr 1994 00:00:00 +0530 Tue, 21 Feb 2012 16:11:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103221 Employees' contribution deducted from wages under the Employees' State Insurance Act is trust money and must be kept separate from the employer's general assets. The court applied the trust principle to hold that failure to segregate the deducted amount does not change its character, and the beneficiary can trace it. A secured creditor may realise its security, but recovery against the company's assets cannot defeat the statutory claim of the Employees' State Insurance Corporation. The sale proceeds must therefore be earmarked to the extent of the deducted contribution due to protect the statutory dues. Case-Laws Companies Law Wed, 13 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103221