1939 (4) TMI 20

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....akravarthi, C. Krishnaswamy Iyer, King and Partridge for the Appearing Parties. JUDGMENT Venkataramana Rao, J. - This is an application by the Secretary of All India Spinners Association, Tamil Nad Branch, for payment to him of a sum of Rs. 9,200 in preference to the ordinary creditors of the Travancore National and Quilon Bank. The claim for the said amount is put under two heads; (1) a sum....

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....im in respect of Rs. 5,000 is made on the basis that the amount was specifically entrusted to the Bank for the specific purpose of being transmitted to Sankararaja through the Bank's branch at Rajapalayam. The official Liquidators deny this fact and submit in the counter-affidavit that the Spinners Association purchased a draft for Rs. 6,000 on payment of that sum and it was nothing more than an o....

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...., that is, after the Bank suspended payment. It seems to me that the decision of ASTBURY, J., confirmed by the Court of Appeal in (1923) 1 Ch. 41 concludes the matter. In that case a crossed cheque was paid into the Bank for collection and the moneys were received after the Bank suspended payment. In the course of the judgment, the learned judge observed thus: "It is common ground that the time....