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TMI Blog1953 (8) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed till the date of payment. The claimant had deposited two sums of Rs. 25,000 and Rs. 15,000 with the Saraswati Soap and Oil Mills Limited, (hereinafter described as the company) while it (the company) was a going concern. When the company went into liquidation the claimant filed a claim before the official liquidators and urged that it was entitled to priority against other creditors. The official liquidators admitted the claim but denied priority to the claimant. A petition under section 183(5) was filed by the claimant and the only point argued on that occasion was whether or not it was entitled to priority. By my order dated 6th December, 1962, I held that the claimant was not entitled to priority in respect of the sum of Rs. 26,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the liquidation proceedings. The mere fact that the debt was trust money should not entitle the claimant to claim any special treatment in the matter of payment of interest. Reference was made by the learned counsel for the claimant to section 23 of the Trust Act. But this section instead of helping him goes against his claim. It is provided in this section that the trustee who commits a breach of trust is not liable to pay interest except where he has actually received interest or ought, or may be fairly presumed, to have received interest or where the breach consists in unreasonable delay in paying trust money to the beneficiaries. In the present case the official liquidators have not received interest for this sum from any other pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that: "Subject to the provisions of this Act, all debts entered in the schedule shall be paid rateably according to the amounts of such debts respectively and without any preference." Sub-section (6) says that: "Where there is any surplus after payment of the foregoing debts, it shall be applied in payment of interest from the date on which the debtor is adjudged an insolvent at the rate of six per centum per annum on all debts entered in the schedule." It will, therefore, follow that in the absence of surplus amounts interest is payable up to the date of adjudication. Section it which is the only other section relating to payment of interest and which covers cases in which "interest is not reserved or agreed for," also lays down that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is an insolvency and no interest is ordinarily permissible to be granted after the presentation of a petition." A Division Bench of the Rangoon High Court has also dealt with a similar question in the case of Esmail Esoof Moola v. Chartered Bank of India, Australia and China and held that: ''Section 229 is only applicable to an insolvent company and in the winding up of an insolvent company interest accruing after the commencement of the liquidation is not a provable debt within section 229." Under section 168 of the Companies Act "the commencement of winding up" by court is deemed to take place on the date of presentation of the petition for winding up. Therefore interest can accrue up to the date of presentation of the winding up p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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