https://www.taxtmi.com/caselaws?id=292666 Money deposited under an agreement requiring it to be kept separate and held by a bank as trustee retains its trust character and does not become an ordinary debtor-creditor deposit, even if the bank uses the funds in its business. On that basis, the depositor was treated as a preferential creditor in the liquidation because the arrangement created a fiduciary relationship rather than a simple loan or deposit. The contractual promise of separation and trusteeship, together with interest payable for deprivation of use, supported the conclusion that the security money remained distinct from the bank's general assets. en-us Mon, 01 Feb 1937 00:00:00 +0530 Mon, 04 Jan 2021 12:32:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292666 Money deposited under an agreement requiring it to be kept separate and held by a bank as trustee retains its trust character and does not become an ordinary debtor-creditor deposit, even if the bank uses the funds in its business. On that basis, the depositor was treated as a preferential creditor in the liquidation because the arrangement created a fiduciary relationship rather than a simple loan or deposit. The contractual promise of separation and trusteeship, together with interest payable for deprivation of use, supported the conclusion that the security money remained distinct from the bank's general assets. Case-Laws Companies Law Mon, 01 Feb 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292666