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1 - 4 of 4 (0.15 seconds)Section 229 in The Companies Act, 1956 [Entire Act]
Indian Companies Act, 1913
The Official Assignee Of Bombay vs Moulvi Abdul Hayee on 29 March, 1933
3. The learned counsel on behalf of the liquidator has quite properly informed me that under those circumstances the position of the trust arises. When the sum of Rs. 250 was paid, this money was sent by way of an anticipated earnest payment in respect of the contract which was contemplated would come into existence between the parties. There was never any contract and therefore the moneys paid remained the moneys of the creditor. I have been referred to Official Assignee of Bombay v. Abdul Hajee AIR 1933 Bom 437, a case in which a sum of Rs. 1,000 was paid to a firm subsequently becoming insolvent by way of deposit in contemplation of the payer entering into a service agreement with the payee, the sum paid being the contemplated sum by way of fidelity guarantee. No agreement was ever concluded and in that case it was held by Wadia, J. that the payees were the trustees of the payers in respect of that money. His decision went to appeal and whilst approving of his view it was reversed upon another point which was not argued before the learned Judge in the first instance.
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