https://www.taxtmi.com/caselaws?id=458634 Money paid in contemplation of a proposed contract, which was never concluded, was treated as trust property rather than part of the company's divisible estate in winding up. Applying insolvency rules through section 229 of the Companies Act, 1913, and excluding property held on trust under section 52(1)(a) of the Presidency Towns Insolvency Act, 1919, the court noted that the company held the identifiable sum for the payer's benefit. Section 94 of the Trusts Act supported that position because possession without the whole beneficial interest creates a duty in favour of the entitled person. The creditor's claim was therefore allowed in priority to general creditors. en-us Fri, 08 Jan 1937 00:00:00 +0530 Mon, 11 Nov 2024 14:46:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458634 Money paid in contemplation of a proposed contract, which was never concluded, was treated as trust property rather than part of the company's divisible estate in winding up. Applying insolvency rules through section 229 of the Companies Act, 1913, and excluding property held on trust under section 52(1)(a) of the Presidency Towns Insolvency Act, 1919, the court noted that the company held the identifiable sum for the payer's benefit. Section 94 of the Trusts Act supported that position because possession without the whole beneficial interest creates a duty in favour of the entitled person. The creditor's claim was therefore allowed in priority to general creditors. Case-Laws Companies Law Fri, 08 Jan 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458634