1941 (2) TMI 11

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....registered deed dated the 31st August, 1937. By that deed all the immovable properties, the machinery plant stock-in-trade fixtures, fittings and other chattels were mortgaged to the third respondent and he was given a floating charge over the book debts of the company. The properties which were subject to the mortgage were described in separate paragraphs and there was a separate paragraph with reference to the floating charge over the book debts. The properties which were subject to the mortgage were, by an order of the Court, sold to the mortgagee for Rs. 1,79000, which amount was set off against the mortgage debt. At a later stage the book debts of the undertaking were sold to him for Rs. 20,994 an this was also set off against the mort....

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....m this source. This was not the claim advanced before Gentle, J., who heard the appellant's petition. Before the learned Judge the appellant boldly asserted that he was entitled by virtue of section 230 to priority over the third respondent in respect of all assets of the company, including those assets which are admittedly subject to the registered mortgage. The learned Judge rightly rejected this contention, but he did not consider whether the appellant's case with regard to the book debts stood on a different basis. He did not consider this question as it was not raised before him. It has been raised in the memorandum of appeal and the Court must consider it. Section 230 makes it quite clear that where there is a floating charge creat....