Section 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.