332. Effect of floating charge
Where a company is being wound up, a floating charge on the undertaking or
property of the company created within the twelve months immediately preceding the
commencement of the winding up, shall, unless it is proved that the company immediately
after the creation of the charge was solvent, be invalid, except for the amount of any cash
paid to the company at the time of, or subsequent to the creation of, and in consideration for,
the charge, together with interest on that amount at the rate of five per cent. per annum or
such other rate as may be notified by the Central Government in this behalf.