1931 (5) TMI 27

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....of the winding up, but who had been paid the debts after that date, were entitled upon the footing that the company was solvent, to receive interest on such debts out of the surplus assets in respect of the period from the date of the winding up Until the principal sums were paid and, if so, at what rate. Das, J., held that the creditors were entitled to receive interest between the date of the winding up of the company and the payment of the principal sums due at the rate agreed between the creditors and the company. The appellants contend that the case is governed by section 229 of the Indian Companies Act, 1913, and sections 49 (5) and (6) and 76 of the Presidency Towns Insolvency Act, 1909. These sections run as follows: - Sect....

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....r the period in question, but it is urged on behalf of the appellants that the interest payable is at the rate of 6 per cent. per annum only. Whether interest is payable at 6 per cent. per annum or at the contract rate depends upon (1) whether in the case of a company which in the event is found to be solvent section 229 applies, and (2), if it does apply, whether the interest claimed is a 'debt provable' within the meaning of that section. Now, "debts provable" are set out in section 228 of the Indian Companies Act, and I am disposed to think that interest payable after the date of the winding up is not a "debt provable" within section 229. Section 229 is only applicable to an insolvent company; and in the winding up of an insolvent ....

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....n until payment is made of the principal debts, at the rate at which, by agreement or otherwise, interest on such debts is payable. In re Humber Ironworks and Shipbuilding Company, Warrant Finance Company, Ex parte ([1869] 4 Ch. App. 643 at p. 645; 38 LJ Ch. 712; 20 LT 859; 17 WR 780), In re Milan Tramways Company ( [1884] 25 Ch. D. 587; 71 LT 545; 32 WR 601; 53 LJ Ch. 1008), Fryer v. Ewart ([1902] AC 187; 71 LJ Ch. 483; 86 LT 242; 9 Manson 281; 18 TLR 426), In re W.W. Duncan & Co. ([1905] 1 Ch. D. 307; 74 LJ Ch. 188; 92 LT 108; 53 WR 299; 12 Manson 38), In re Pink, Elvin v. Nightingale ([1927] 1 Ch. 237; 96 LJ Ch. 292; 136 LT 399; 70 SJ 1090), In re Agricultural Wholesale Society, Limited ([1929] 2 Ch. D. 261; 98 LJ Ch. 396; 141 LT 551;....