1960 (8) TMI 41

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.... receipt, exhibit P-2, prove this-that the sum of Rs. 5,000 was deposited by the petitioner with the company in liquidation as security for any claims arising out of the agency given to the petitioner. It is admitted by the liquidator that the company has no such claims against the petitioner, and it seems to me clear that the deposit is a deposit earmarked for a specific purpose and, therefore, i....

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....with the liquidator, not on the ground that it is a debt entitled to preferential payment under section 230 of the Indian Companies Act, 1913, but on the ground that it really does not form part of the funds of the company; therefore, even applying sections 2(d) and 28(5) of the Provincial Insolvency Act in view of section 229 of the Companies Act, the said amount does not really vest in the liqui....