Hearings
England & Wales
08 Feb 1961 [1962] Ch 21; [1961] 3 WLR 57; [1961] 1 All ER 796, Ch D
In re E J Morel (1934) Ltd
Subject Matter
BANKING — Current and loan accounts — Combination of — Three accounts of company — Overdrawn account frozen — Current and wages account — Current account credit in excess of wages account debit — Periodic transfer of wages account debit to current account — Whether accounts interdependent — Liquidation of company — Whether debit on wages account money advanced to pay wages — Whether bank entitled to preferential claim — Companies Act, 1948, s 319 (4)
BANKRUPTCY — Set off — Mutual dealings — Two current accounts with bank — Preferential debt to bank on one account — Set-off of other — Wages — Bankruptcy Act, 1914, s 31 — Companies Act, 1948, s 317
COMPANY — Winding up — Preferential debt — Wages — Three bank accounts — Frozen account, current account and wages account — Payments to frozen account used only to reduce indebtedness to bank — Current account in credit in excess of amount to which wages account in debit — Whether debit in wages account money advanced for the purpose of paying wages — Whether bank entitled to preferential payment of debit — Mutual credit and set-off — Bankruptcy Act, 1914, s 31 — Companies Act 1948, ss 317, 319 (4)