TaxTMI 
TaxTMI 
1940 (11) TMI 10
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecember 9, 1938, either have produced or will produce moneys sufficient to enable the debts in question to be paid. The other assets of the borrowers, namely, the Spa Plaza Hotel and Laundry, will not produce any money. The real point is whether the creditors whose debts are in -question have a right to-have their debts paid in priority to the :plaintiffs out of the proceeds of the sale of the as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....264 (1) after the date of the appointment of the receiver and -before the date of the winding up, those debts fall within the provisions of section 264 (4) (6) and, by force of the clear language ,of the sub-section, " shall...have priority over the claims of .'holders of debentures under any floating charge created by the .company, and be paid accordingly out of any property comprised in or subje....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rity over the claims of the debenture holders in any property which, in that moment of time, is comprised in or subject to that charge. In the present case the debenture held by the plaintiffs contained a floating charge over all the borrowers' property. On December 9, 1938, that charge ceased to float on the property and assets of which Mr. Veale was appointed receiver. The charge crystallised a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....visions of the two sections of the Compaines Act. But I propose to make the following declaration on this summons: that the several creditors named in the Fourth Schedule to the certificate made in this action and filed on July 19, 1940, and therein respectively distinguished by the numbers twelve to thirty inclusive, are not entitled to have their respective debts or any part thereof paid in prio....