Section 529. Effect of floating charge

A floating charge on the undertaking or property of the company created within six months of—

(a) the presentation of the winding up petition in the case of winding up by Court; or

(b) the passing of the resolution in the case of voluntary winding up,

shall be invalid except to the amount of any cash paid to the company at the time of or subsequently to the creation of and in consideration for the charge together with interest or return on that amount at the rate of five per centum per annum unless it is proved that the company is solvent immediately after the creation of the charge.