TaxTMI 
TaxTMI 
TaxTMI 
1936 (5) TMI 39
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.... the railway receipts as security for advances made to them by some of the Madras banks and it has since been held by the Privy Council in The Official Assignee of Madras v. The Mercantile Bank of India, Ltd. 1934 58 Mad 181, that a pledge of a railway receipt operates as a pledge of relative goods. On 25th June 1928, a large quantity of groundnuts was banded over to the insolvents by the Port Trust without production of the railway receipts and instead the Port Trust took from the insolvents and one Pyda Rangiah Chetty an indemnity bond of that date in their favour. The insolvents took advantage of this procedure to commit a fraud. They pledged the railway receipts relating to the groundnuts with the Central Bank. After the insolvency the Central Bank claimed that the groundnuts covered by the railway receipts belonged to them and brought a suit against the Port Trust, C.S. No. 573 of 1929. The insolvent estate was of course represented by the Official Assignee and he and Pyda Rangiah Chetty were brought on record in that suit by means of third party notices. A decree was passed on 7th March 1934, in favour of the Central Bank against the Port Trust for Rs. 25,041-2-6 and in favou....
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....oy the test of whether the Port Trust is entrusted with the control or management of a local fund because Mr. K.S. Krishna-swami Iyengar has put an interpretation upon that sub-section with which we agree. It is that the words "legally entitled to or entrusted by the Government with the control or management of a Municipal or Local fund" qualify the words immediately preceding them, namely, "or other authority" and do not relate to a Municipal Committee, District Board or body of Port Commissioners. We think that that is clearly correct. It is obvious that a Municipal Committee is a "local authority" and equally so a District Board, land in our view so also is a body of Port Commissioners; and it is conceded that the Port Trust comes within this description; and it does not seem to us to be intended or reasonable that they should be a "local authority" only when they 'Control or are entrusted by the Government with the control and management of a Municipal or Local fund, but it is otherwise in the case of other authorities not definitely specified who can only bring themselves within that definition if the latter part of the sub-section can be applied to them; and moreover the ....
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....ginal notes, are not debts due to the bankrupt in the course of his business within the order and disposition clause, Bankruptcy Act, 1869, Section 15(5). The expression "debts due" in that clause is not confined to debts presently payable, but, on the other hand, will not include debts which were only contingent at the commencement of bankruptcy. 7. This case however does not assist the appellant because on p. 388 illustrations are given by Mellish, L.J., of the various meanings of the word "due" which may be found in the Bankruptcy Act itself, and he states: Then again, in Section 49 it is enacted that an order of discharge shall release the bankrupt from all other debts provable under the Bankruptcy Act except debts due to the Crown. In that place I think that 'debts due to the Grown' mean all provable demands which the Crown has against the bankrupt whether they have become payable or not and whether they are in point of law strictly debts or not. 8. In the present Section 28 of the English Bankruptcy Act, which is the equivalent of Section 45, Presidency Towns Insolvency Act, although differently worded, the words "debts due to the Crown" do not appear, though it i....
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....rabbits imported from Australia by the appellants, the Board of Trade. The company sold the rabbits to various retail dealers and received the purchase moneys which it was bound to pay over to the food controller less commission and expenses. The company went into voluntary liquidation and was found to be insolvent and at the date owed the food controller GBP9,689-5-10, representing purchase money which had been collected by the company on account of the food controller but not paid over to him. The food controller lodged a proof of the debt and claimed to be paid in priority to the other creditors of the company on the ground that it was a Crown debt. The question turned on the construction of the Companies (Consolidation) Act, 1908,. Sections 186 and 209. Section 186 deals with the consequences which shall ensue on the voluntary winding up of a company and provides that the property of the company shall be applied in satisfaction of its liabilities pari passu, and Section 209 is similarly-worded to Section 33, Bankruptcy Act. It was held that the Crown had no claim to priority of payment other than such priority as was given by the statute and no such priority was given by statut....