9911796707
TMI Blog1941 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 mortgage debt. The appellant says that by virtue of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced 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 created by a debenture the debenture holder does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of our decision the case will be remanded to the Original Side for the determination of this question. If the appellant succeeds in establishing his claim he will be entitled to be paid out of the proceeds of the book debts to the extent of Rs. 1,000, or any lesser sum proved will stand on the same basis. If necessary, there will be a re-sale of those assets. The question how the appellant's claim should be satisfied, supposing he establishes it, will be left to the Original Side to be decided in the light of this judgment. The appellant's rights, whatever they may be, will, of course, be subject to the rights of the liquidator under sub-section (3) of section 230. The appellant has succeeded but we do not think that be is entitled to an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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