https://www.taxtmi.com/caselaws?id=199036 Notice of a presented insolvency petition can prevent an execution creditor from retaining assets realised before adjudication, where the petition was later restored and resulted in adjudication. Under Section 53(1) of the Presidency-towns Insolvency Act, the payment was ineffective against the Official Assignee. Mere attachment of the debtor's property did not create a charge or make the execution creditor a secured creditor; attachment only restrained dealing with the property and did not confer secured status. Section 53(2) therefore did not apply, and the creditor could not claim priority on that basis. en-us Tue, 02 Apr 1935 00:00:00 +0530 Sat, 17 Feb 2018 16:06:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=199036 Notice of a presented insolvency petition can prevent an execution creditor from retaining assets realised before adjudication, where the petition was later restored and resulted in adjudication. Under Section 53(1) of the Presidency-towns Insolvency Act, the payment was ineffective against the Official Assignee. Mere attachment of the debtor's property did not create a charge or make the execution creditor a secured creditor; attachment only restrained dealing with the property and did not confer secured status. Section 53(2) therefore did not apply, and the creditor could not claim priority on that basis. Case-Laws Companies Law Tue, 02 Apr 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=199036