1925 (12) TMI 4

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his date was fixed for the disposal of his objection. Dr. Tug's case seems to be this: On the 23rd of January 1923 he entered into an agreement, with the Managing Agents of the Annapurna Company, to the effect that the latter were to employ Dr. Tug's son as their servant on a pay of ₹ 200 per month, Dr. Tug or his son furnishing a security of ₹ 10,000. Dr. Tug under the agreeme....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e either the mill is his property or that he has a charge over the mill, so that he has a preference over all the creditors of the Company in respect of the sum of ₹ 3,500. As regards the balance of ₹ 6,500 he apparently claims that he should be treated as preferential creditor, though he does not say so in express terms. 3. The agreement or a copy of it has not been produced, but we ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....India by which a creditor, who has advanced money, is entitled to a charge over the property acquired with the money advanced. No such authority has been quoted to us. The case of Malvankar v. Credit Bank of India Ltd. AIR 1914 Bom 118 does not, in our opinion, help the objector. We hold therefore that Dr. Tug has no charge over the property. 5. As to preferential claim he is as much in the posit....